CF Industries Holdings, Inc. (CF: Quote) announced that it has entered into a definitive deal with Glencore International plc (GLEN.L,GLNCY.PK,GLCNF.PK) to buy interests in Canadian Fertilizers Ltd or CFL for C$915 million cash.
CFL currently owned by Viterra, Inc. (VT.TO: Quote,VTA.AX), owns the largest nitrogen fertilizer complex in Canada, located in Medicine Hat, Alberta.
Commenting on this, Stephen Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. stated, "This acquisition will add approximately 425,000 gross tons of ammonia and 275,000 tons of urea per year to our nitrogen production capacity in a region with low natural gas costs."
In March of 2012, Glencore announced the execution of a definitive agreement to acquire all of the outstanding shares of Viterra.
Pursuant to deal between CF Industries and Glencore, the interests in CFL being acquired by CF Industries consist of 34% of CFL's outstanding preferred and common stock and a product purchase agreement. As a result of the transaction and subject to the product purchase agreements with CFL, CF Industries will be entitled to buy 100% of CFL's ammonia and urea production.
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by RTT Staff Writer
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