Yara plans to buy Terra Industries for US$4.1bn, according to reports. The all-cash acquisition of Terra "will create a clear global No. 1 in the fertilizer industry.The deal also allows it to tap Terra's logistics in the United States. Yara's offer values Terra at $41.1 per share and represents a premium of 23.6 percent compared with Friday's closing price, the report stated. The enlarged company will have about 30 percent share in the U.S. fertilizer market and a 8 percent global market share. Yara said it expects some $60 million annual synergies from the deal.
Yara said it does not see any regulatory problems with the acquisition, which it expects to close in June. Norway's national insurance fund Folketrygdfondet, which holds 6.57 percent in Yara, has agreed to underwrite and subscribe its pro-rata share of the rights issue. The remaining part of the rights issue is underwritten by Citigroup, Deutsche Bank and Nordea, the report added.