DOW JONES NEWSWIRES
Terra Industries Inc. (TRA) has finalized a deal to be acquired
by larger rival CF Industries Holdings Inc. (CF) for $4.7 billion,
ending a yearlong battle between the fertilizer makers.
The announcement came hours after Norway's Yara International
ASA (YAR.OS) said it wouldn't raise its $4.1 billion bid for Terra,
which was trumped last week by CF.
Terra holders will get $37.15 and 0.0953 share of CF for each
share of Terra, valuing the stock at $46.74 based on Thursday's
closing price. Its shares were down 1.3% to $46.30, while CF fell
3.8% to $96.83.
The companies anticipate annual cost savings of $135
million.
Rising commodity prices have sparked a flurry of deals in the
crop-nutrient sector in recent weeks, and Terra's focus on
nitrogen-based products has kept it among the most attractive
operators. It has outperformed peers, with its share price doubling
since November.
Yara will get a $123 million break-up fee for its deal with
Terra falling through.
-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354;
kevin.kingsbury@dowjones.com