CF Industries Holdings, Inc.
) announced that it has completed the purchase of the outstanding
interests it did not already own in Canadian Fertilizers Limited
(CFL) for total cash consideration of roughly C$910 million
(around $904 million).
Last year, CF Industries entered into an agreement with
Glencore International plc to acquire the interests in CFL that
were owned by Viterra, Inc. (a wholly-owned subsidiary of
Glencore), subject to certain adjustments. The deal replaced an
earlier agreement under which Glencore planned to sell the stake
The finalization of the deal was subject to the closing of
Glencore's acquisition of Viterra, receipt of regulatory
approvals in Canada and other terms and conditions in the
definitive purchase agreement. CF Industries held a 66% interest
in CFL before it announced its intentions to acquire the
remaining shares in Aug 2012.
CFL owns the largest nitrogen fertilizer complex located in
Medicine Hat, Alberta, in Canada. With the closure of the
acquisition, CF Industries' annual marketable nitrogen volume has
increased by about 425,000 gross tons of ammonia and 275,000 tons
The Medicine Hat complex has two ammonia plants with 1,250,000
tons of production capacity and a urea plant with 810,000 tons of
production capacity. Before the close of the acquisition, CFL's
results were included in CF Industries' financial statements as a
consolidated variable interest entity.
Cliffs Industries currently retains a short-term Zacks Rank #3
(Hold). The company is scheduled to release its first-quarter
2013 results after the closing bell on May 8.
Other fertilizer companies having favorable Zacks Rank are
CVR Partners, LP
). While CVR Partners holds a Zacks Rank #1 (Strong Buy),
Monsanto carries a Zacks Rank #2 (Buy).
AGRIUM INC (AGU): Free Stock Analysis Report
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MONSANTO CO-NEW (MON): Free Stock Analysis
CVR PARTNERS LP (UAN): Free Stock Analysis
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