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Yara to buy US competitor Terra Industries for $4.1 billion

February 15, 2010
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According to the Associated Press, Norwegian fertilizer company Yara International ASA has agreed to acquire U.S. competitor Terra Industries Inc. for $4.1 billion. Yara will pay $41.10 per share of Terra stock, a 23.6 percent premium on the company’s last closing share price. The Norwegian company said in a statement that the boards of directors of both Yara and Terra approved the acquisition unanimously. Yara plans to fund the deal in part by raising $2 billion-$2.5 billion in a rights issue. The deal is expected to close in June 2010 on the conditions of the rights issue, Terra shareholder approval and the approval of regulatory authorities, Yara said. The company said the cash call has the support of its largest shareholder, the Norwegian government, which holds over one-third of Yara shares. Citi, Deutsche Bank, Nordea and Norway’s National Insurance Fund will also underwrite the rights issue. The two companies are already part of a joint operation in the U.K.
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