Agricultural Stocks Surge On CF-OCI Merger Rumor

Shares of CF Industries Holdings, Inc.   CF a  re up almost 10 percent on Friday, after The Wall Street Journal reported the company is “in advanced talks for a merger deal with Dutch counterpart” OCI N.V. OCINY, which is also up more than 10 percent.

The merger could be completed before the end of the month, people familiar with the matter said.
The details of the tie-up are yet to be disclosed by the companies. Two of the people told WSJ that, if it were to take place, the merger “may be structured as a so-called inversion -- a type of combination in which the U.S. company moves its tax headquarters abroad.”

The report adds, “The chemical-dealmaking surge is part of a broader upswing, with announced global takeover volume so far this year reaching $2.44 trillion, according to Dealogic. That puts it on pace to challenge 2007 as the busiest year ever for mergers and acquisitions. One factor driving the activity that could be in play in the CF-OCI talks is a strong dollar.”

Other fertilizer stocks were on the rise on Friday afternoon:

• Mosaic Co MOS was up about 0.11 percent.
• Potash Corp./Saskatchewan (USA) POT was up 0.27 percent.
• Agrium Inc. (USA) AGU was up 0.59 percent.
• CVR Partners LP UAN was up almost 1 percent.