US okays Agrium’s bid for CF, subject to divestments

23 December 2009 19:29  [Source: ICIS news]

TORONTO (ICIS news)--The US Federal Trade Commission (FTC) said on Wednesday that Canadian fertilizer major Agrium could proceed with its planned hostile acquisition of US rival CF Industries, subject to Agrium divesting two US anhydrous ammonia terminals.

Under a consent order with the FTC, Canada’s Agrium agreed to divest CF’s Ritzville, Washington, anhydrous ammonia terminal, as well as its own anhydrous ammonia terminal at Marseilles, Illinois, the commission said.

The terminals would be sold to Terra Industries or another commission-approved buyer, it said.

Also, Agrium would rescind its rights to market anhydrous ammonia produced by Rentech at Rentech’s plant in East Dubuque, Illinois, the commission said.

Furthermore, Agrium would be required, for 10 years, to provide advance written notification to the commission of any intent to acquire any interests or assets related to the distribution and sale of anhydrous ammonia, it said.

Without the divestments and commitments, Agrium’s acquisition of CF would eliminate competition in the market for anhydrous ammonia fertilizer, the commission said.

Earlier this week, Agrium extended its offer to acquire CF until 22 January, but CF said Agrium’s offer remained not compelling enough for consideration.

Agrium, CF and Terra have been embroiled in drawn-out takeover battles for almost all of 2009, with Agrium seeking to acquire CF and CF seeking to acquire Terra.

For more on Agrium, CF Industries and other producers visit ICIS company intelligence
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By: Stefan Baumgarten
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