NorwayÔÇÖs Yara buys Terra Industries

Yara International, one of the world's largest fertilizer producers, has agreed to buy Terra Industries for $4.1 billion to boost its presence in the US.  The transaction will be partially funded by a rights issue worth between $2 billion and 2.5 billion, Yara said, adding that its majority owner, the Norwegian government, would participate accordingly in the issue.  "The transaction has been unanimously approved by Yara's Board of Directors and unanimously approved by Terra's Board of Directors," Yara said in a statement.  Terra owns and operates six nitrogen manufacturing facilities in North America and owns a 50 percent interest in joint ventures in Trinidad and the UK, the latter in partnership with Yara  "Yara is committed to the US market, and this transaction presents an attractive opportunity for both companies to strengthen their positions in the US. Yara and Terra are a perfect fit, and the combination will elevate Yara to a truly global leader in the industry.  ÔÇ£Both companies are strong in ammonia and nitrates, and have complementary geographical footprints. Terra's ammonia and upgraded fertilizer distribution system in the US will be combined with Yara's global sourcing and optimization capabilities as the world's largest producer and trader of fertilizer and ammonia,ÔÇØ says J├©rgen Ole Haslestad, president and CEO of Yara International. YaraÔÇÖs bid comes a month after Deerfield, Illinois-based CF Industries Holdings dropped its offer for Sioux City, Iowa-based Terra. CF had made efforts to acquire Terra since January 2009 while fending off a hostile bid from Agrium. Both companies were battling to become the worldÔÇÖs second-largest publicly traded maker of nitrogen-based fertilizers after Yara.  If approved, the transaction will be one of the largest Norwegian acquisitions ever, according to Yara.