Competition Bureau In Pact With Agrium Regarding CF Buy
DOW JONES NEWSWIRES
The Competition Bureau of Canada has reached an agreement with Agrium Inc. (
AGU) to resolve competition concerns related to Agrium's proposed acquisition of
CF Industries Holdings Inc. (CF).
As reported, Agrium has made a $3.7 billion takeover bid for CF, which in turn
has made a similar-sized bid for Terra Industries Inc. (TRA). CF has repeatedly
rejected Agrium's approaches in favor of a deal with Terra. In a release earlier
Thursday, Agrium said it remains fully committed to acquiring CF.
The Competition Bureau said the agreement follows a review of Agrium's
proposed acquisition of CF, during which the Bureau concluded that the
acquisition would likely lead to a substantial lessening of competition in the
wholesale supply of certain nitrogen fertilizer products in Alberta and
Saskatchewan.
Under the terms of the agreement, Terra, a new entrant into Western Canada,
will purchase 50% of Agrium's ammonia and urea production complex in Carseland,
Alta. Agrium and Terra have also agreed to a five-year supply contract, under
which Terra will receive a minimum of 60,000 metric tons of urea per year. As a
result, a combined total of 466,000 tons of nitrogen-based fertilizers will be
available to Terra per year, through both the production complex and the supply
agreement.
The Competition Bureau said the remedy package will protect competition in the
supply of fertilizer products used by farmers in Western Canada, in the event
that Agrium is ultimately successful in its bid for CF Industries.
Wednesday in New York, Agrium closed at $47.99, down 2 cents.
-By Tara Zachariah, Dow Jones Newswires; 416-306-2100; tara.zachariah@
dowjones.com
(END) Dow Jones Newswires
11-04-091837ET
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