Market News & Headlines >> Yara, CF International Terminate Merger Talks

Norway's Yara International and Illinois-based CF Industries said in separate news releases late last week that they had abandoned merger talks that would have created an international fertilizer industry giant.

Both companies said the merger discussions were terminated because they could not agree on terms acceptable to all of their respective shareholders.

“This has been a constructive process, with solid work by both parties. We were able to identify significant structural and operational synergies, but in the end it became clear that we would not be able to agree on terms that would be acceptable to all stakeholders," said Torgeir Kvidal, President and Chief Executive Officer of Yara International ASA.

A merger would have created a combined company with a market capitalization estimated at somewhere between $24.5 billion to more than $26 billion with annual sales estimated at $18-$20 billion.

A successful merger would have given Yara access to lower-cost U.S. supplies of natural gas, while CF Industries would have gained a global presence through Yara’s well-established international distribution network. Yara facilities and warehouses in numerous countries and a sales presence in more than 150 countries.