A new fertilizer threesome (Yara, Terra, CF)

After an announcement last week that Yara and Terra have agreed on the sale of Terra to Yara.  CF has now come back with the following take over option which tops the previous bid from Yara:

CF Industries Holdings Inc. said March 2 that it has offered to acquire Terra Industries Inc. for $37.15 in cash and 0.0953 of a share of CF Industries common stock for each Terra share. The offer has a total value of $47.40 per share based on CF Industries closing price on Monday, March 1, 2010. CF Industries has received $4.05 billion of financing commitments and the offer is not subject to financing. Morgan Stanley Senior Funding, Inc. has committed $2.8 billion and The Bank of Tokyo-Mitsubishi UFJ, Ltd. has committed $1.25 billion. CF Industries also announced that it intends to commence an exchange offer for Terra shares that will be scheduled to expire on April 2, 2010.

Agrium is still continuing to pursue it’s take over of CF.  The only thing anyone know for sure is that the fertilizer world is about to get a lot smaller.

Continue to voice your concerns on fertilizer manufacture consolidation to your local MLA.