Fertilizer maker CF Industries Holdings Inc. on Friday agreed to buy rival Terra Industries Inc. for about $4.7 billion in cash and stock after Norwegian rival Yara International ASA decided not to raise its offer for Terra.
The deal ends a wild, lengthy battle for dominance of the North American fertilizer industry that included competing hostile bids and fights for board seats, as the stocks of all the companies involved surged.
Canada's Agrium Inc. pulled its hostile bid for CF on Thursday night.
CF had come a step nearer to closing its deal with Terra when Canadian fertilizer maker Agrium Inc. said on Thursday it was abandoning its $5.4 billion bid for CF Industries.
CF launched its unsolicited bid for Terra in January 2009, offering about $2.1 billion in stock for the smaller company.
Yara, one of the world's biggest producers of mineral fertilizers, said that despite yielding in the battle for Terra, it remained upbeat on consolidation prospects for the splintered global fertilizer industry, a hotbed of recent deal activity.
"Terra would be a perfect fit to Yara and attractive at our proposed valuation, but we will not increase our offer that was first accepted by the Terra board," Chief Executive Joergen Ole Haslestad said in a statement.
"Consolidation of the fertilizer industry worldwide is far from over," he told Reuters. "The way we see it today, acquisition options have been limited somewhat, but you never know how things will develop."
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