Agrium may raise its $4.1-billion bid for CF

Canadian fertiliser giant Agrium Inc may have to raise its $4.1-billion acquisition offer for US fertiliser maker CF Industries since the latter is reported to be nearer to a $3.7-billion merger of Terra Industries Inc.

CF Industries Holdings Inc today said it is closer to acquiring Terra Industries for around $3.7 billion. CF said the pre-merger waiting period under the Hart-Scott-Rodino applicable to its proposed business combination with Terra Industries Inc has expired as of 5 August 2009.

"CF Industries has now satisfied the regulatory conditions regarding its proposed business combination with Terra," it said. "With the expiration of the pre-merger waiting period, we now can promptly close a business combination with Terra," said Stephen R Wilson, chairman, president and chief executive officer of CF Industries. "We look forward to Terra agreeing to this business combination which is clearly in the best interests of both CF Industries and Terra stockholders," he added.

On 20 July, Caligary, Alberta-based Agrium Inc had extended the expiration date of its offer to acquire CF Industries Holdings Inc for $40 a share in cash plus one Agrium share per CF share until midnight (New York City time) on 19 August 2009.

While extending an offer for CF, Agrium had said it was fully committed to the merger of Agrium and CF.

"Agrium remains fully committed to acquiring CF, and as we have previously stated, we strongly believe that combining Agrium and CF will create a terrific company and significant value for stockholders. Despite the fact that CF continues to ignore a clear mandate to conclude a transaction, we will continue to press CF to execute a mutually beneficial merger agreement. Our offer remains far superior to any alternative articulated by CF, including remaining independent or paying a premium for Terra," Agrium president and CEO Mike Wilson said.