Business News
Norwegian fertilizer maker Yara makes offer for US rival Terra
Feb 15, 2010, 9:28 GMT
Oslo - Yara International, the world's largest supplier of mineral fertilizers and ammonia, on Monday said it has made a cash offer of 4.1 billion dollars to buy its US rival Terra Industries.
The Norwegian group's offer represents a premium of 23 per cent on Terra's February 12 closing price, and Yara hoped to conclude the deal in the second quarter pending approval from Terra shareholders and regulators.
The deal was is to be backed by a rights issue of 2-2.5 billion dollars, Yara said.
The Norwegian government, the largest shareholder in Yara with a 36-per-cent stake, said it backed the deal providing it receives parliamentary backing.
'Yara has been a good investment for the Norwegian state, and we support investments which ensure continued industrial growth in the company,' Trade and Industry Minister Trond Giske said in a statement.
Yara traces its roots back to 1905 and Norwegian industrial firm Norsk Hydro. The group has sales in over 120 countries, and is the world's largest supplier of mineral fertilizers and ammonia.
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