By Lisa Beilfuss
CF Industries Holdings Inc. has agreed to acquire the remaining
stake in GrowHow UK Ltd., making the British fertilizer company a
wholly owned subsidiary.
Chicago-based CF will buy the 50% stake from Norway's Yara
International ASA for $580 million in cash in a transaction it
expects to complete later this year. CF entered into a joint
venture with GrowHow five years ago.
CF manufactures and distributes nitrogen products for
agricultural and industrial customers. GrowHow, according to its
website, supplies 40% of UK fertilizer needs.
"The operations have an advantaged position in an
import-dependent region," said CF Chief Executive Tony Will, adding
that CF expects "a mid-teens return profile for the
acquisition."
Late last year, CF said merger talks with Yara to form the
world's largest nitrogen fertilizer company had ended after the
companies couldn't agree on terms and amid potential regulatory
difficulties.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
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