Yara Buys Terra in Surprise Merger
Year-long fertilizer war ends.
Bryce Knorr
Published: Feb 15, 2010
The latest skirmish in the global fertilizer wars took an unexpected twist on Monday, when Terra Industries agreed to be purchased by Norway’s Yara International, writing a surprise finale to a year-long battle for the company.
The move would give Yarra, already a major international player in the nutrient industry, an important foothold in the North American Market, as the fertilizer business undergoes what could be a major round of consolidations.
Terra would remain headquartered in Sioux City, Iowa, with its current CEO Michael Bennett serving as President of Yara North America.
Terra successfully fought off the advances of CF Industries, which last month abandoned its attempt at a hostile takeover, one of a series of maneuvers as the fertilizer trade experienced historic volatility. The run to record nutrient prices in 2008 left companies flush with cash, which they attempted to use after share prices collapsed during the financial crisis last year.
CF Industries, for example, remains a target of Agrium, which said it is still committing to its takeover bid.
With the acquisition of Terra, Yara would have a 30% share of the U.S. market, and an 8% global share.
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