CF Industries Holdings Inc. said Jan. 14 it has decided to stop pursuing Terra Industries Inc. after a yearlong battle to acquire the rival fertilizer maker.
CF Industries also said it has sold all its Terra shares, with a net gain that more than offsets expenses it incurred from its proposed acquisition of Terra.
"It is clear that an acquisition of Terra now would require a significant increase in our offer, given the substantial uplift in equity values in the fertilizer sector," said Stephen Wilson, chairman, president and chief executive officer of CF Industries. "While the strategic merits of a transaction are undeniable, it is not in the best interests of CF Industries stockholders to increase our offer to the level that we believe now would be required for Terra to agree to an acquisition. We are, of course, pleased that prospects for nitrogen and phosphate fertilizers have improved in the view of investors, a view we share."
Meanwhile, CF Industries remains a target of a hostile bid from Canadian fertilizer manufacturer Agrium. On the same day CF Industries dropped its Terra bid, Agrium announced it would nominate two independent directors to the CF board.