Yara has signed a cash merger agreement with Terra
Yara International ASA has signed a cash merger agreement with Terra Industries Inc. at a price of USD 41.10 per Terra share, representing a market capitalization of Terra of USD 4.1 billion. The transaction will give Yara an improved position in the US, and is planned to be supported by a Yara rights issue of USD 2.0-2.5 billion.
The agreed Terra share price of USD 41.10 represents a premium of 23.6% above the closing price on 12 February 2010.
"Yara is committed to the US market, and this transaction presents an attractive opportunity for both companies to strengthen their positions in the US. Yara and Terra are a perfect fit, and the combination will elevate Yara to a truly global leader in the industry. Both companies are strong in ammonia and nitrates, and have complementary geographical footprints. Terra's ammonia and upgraded fertilizer distribution system in the US will be combined with Yara's global sourcing and optimization capabilities as the world's largest producer and trader of fertilizer and ammonia", says Jørgen Ole Haslestad, President and CEO of Yara International ASA.
Terra owns and operates six nitrogen manufacturing facilities in North America and owns a 50% interest in joint ventures in Trinidad and the United Kingdom, the latter in partnership with Yara. Terra has total production capacities of approximately 3.6 million tons ammonia, 3.0 million tons UAN, 1.2 million tons AN, 0.3 million tons urea and 0.3 million tons NPK, including those from its equity shares in its joint ventures. The company reported in 2008 and for twelve months ended 30 September 2009, turnover of USD 2.9 billion and USD 1.9 billion respectively, and net income of USD 641 million and USD 321 million, respectively. Terra has approximately 940 employees in the US and Canada.
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