By Kjetil Malkenes Hovland
OSLO--Norwegian chemical company Yara International ASA (YAR.OS)
said Tuesday that it is discussing a merger with U.S. fertilizer
producer CF Industries, potentially boosting the company's U.S.
footprint.
"Yara International ASA confirms it is in discussions with CF
Industries regarding a potential merger of equals transaction,"
said Yara. CF Industries also published a similar statement.
Oslo-listed fertilizer producer and chemical company Yara,
demerged from Norsk Hydro ASA (NHY.OS) in 2004, has a market cap of
86.43 billion Norwegian kroner ($13.62 billion), and a worldwide
presence with sales to 150 countries.
CF Industries is a chemical company based in Deerfield,
Illinois. The company operates seven nitrogen fertilizer
manufacturing complexes in the central U.S. region and Canada and a
network of distribution terminals and warehouses, mainly in major
grain-producing states in the Midwest.
"The discussions are at an early stage, and there can be no
assurances that these discussions will result in any transaction,"
said Yara.
Yara's biggest owner is the Norwegian government with a 36.21%
stake. The second-biggest owner is the state-controlled Government
Pension Fund Norway with a 4.72% stake.
The government of Norway has started several processes to reduce
its ownership in domestic businesses recently. The government
currently owns about a third of the shares listed on the Oslo Stock
Exchange, including a 67% stake in oil giant Statoil ASA (STO).
Norway's government said Monday it was prepared to sell its
59.17% stake in Oslo-listed salmon farmer Cermaq ASA to Mitsubishi
Corp. (8058.TO), in a deal valuing the company at 8.88 billion
Norwegian kroner ($1.40 billion).
The government also said on Sept. 17 that it planned an initial
public offering of fully-owned real-estate company Entra in what
could be the biggest listing on the Oslo Stock Exchange since
2010.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
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