Terra Industries, Inc. To Be Acquired By Yara International (TRA, YARIY)
February 15, 2010 9:37 AM
Terra Industries, Inc. (NYSE: TRA) has been valued at $4.1 billion in a deal under which it will be acquired by Yara International ASA (ADR) (OTC: YARIY), a Norwegian fertilizer company. The deal will allow the Norwegian company to take advantage of lower fuel costs in the US.
Yara is planning to raise between $2 billion, and $2.5 billion in a rights issue, to fund the acquisition. Yara International beat analysts’ expectations on Q4 results, with profits of 1.42 billion Norwegian kroner as against a loss of 2.11 billion kroner a year back.
"We saw a major improvement in fertilizer markets towards the end of the fourth quarter, as global nitrogen and phosphate markets turned demand-driven," said Jorgen Ole Haslestad, President, and Chief Executive Officer of Yara.
Yara has an employee base of 8,000 people across the globe, and caters to 120 countries. Terra Industries, Inc. has 940 employees spread across Canada, and the US.
