Norway’s Yara to acquire US rival Terra for $4.1 billion
16 Feb 2010
Norwegian fertilizer company Yara International ASA has enterd into a deal to acquire all outstanding shares of its Iowa-based competitor Terra Industries Inc. for $4.1 billion.
As per the deal, Yara would pay $41.10 per share of Terra stock, a 23.6 per cent premium on its closing share price on 12 February 2010, the last trading day prior to the announcement.
The Norwegian company says the boards of directors of both companies unanimously approved the deal, which is expected to close by the end of second quarter of 2010.
Yara's purchase comes after US chemical manufacturer CF Industries Holdings Inc. in January withdrew a hostile takeover of Terra, saying the company had become too expensive. (See: CF Industries raises offer for Terra to $4.58 billion)
''Our Board is unanimous in its firm belief that this transaction is compelling for our shareholders, customers, and employees'' said Henry Slack, chairman of the board of Terra.
''In December Terra paid a special cash dividend of $7.50 per share to our shareholders, and with this transaction, we have delivered a significant premium for their investment in Terra.'' Michael Bennett, Terra president and CEO, said.
