CF Industries acquire Viterra’s stake in Canadian Fertilizers Ltd

CF Industries to acquire Viterra’s stake in Canadian Fertilizers Ltd

11:45 AM, 3rd August 2012
CF Industries to acquire Viterra’s stake in Canadian Fertilizers Ltd

DEERFIELD, US: CF Industries Holdings Inc has agreed with Glencore International plc to acquire the interests in Canadian Fertilizers Limited (CFL) currently owned by Viterra, Inc for total cash consideration of C$915 million, subject to certain adjustments. CFL owns the largest nitrogen fertilizer complex in Canada, located in Medicine Hat, Alberta.

“We are pleased to announce acquisition of Viterra’s interests in CFL. This acquisition is a low-risk expansion of our nitrogen supply capability, as we have operated the complex for over 35 years. It will add approximately 425,000 gross tonne of ammonia and 275,000 tonne of urea per year to our nitrogen production capacity in a region with low natural gas costs,” said Stephen R Wilson, Chairman and CEO, CF Industries.

In March of 2012, Glencore announced the execution of a definitive agreement to acquire all of the outstanding shares of Viterra. Pursuant to the agreement between CF Industries and Glencore, the interests in CFL being acquired by CF Industries consist of 34 per cent of CFL’s outstanding preferred and common stock and a product purchase agreement. As a result of the transaction agreements with CFL, CF Industries will be entitled to purchase 100 per cent of CFL’s ammonia and urea production.

The Medicine Hat complex has two ammonia plants with 1,250,000 tonne of production capacity and a urea plant with 810,000 tonne of production capacity. The completion of the transaction is subject to the closing of Glencore’s acquisition of Viterra, receipt of regulatory approvals in Canada.

(C) WOC News

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