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Tuesday, September 23, 2014

Norway's Yara, CF in talks to create $27.5 billion global fertiliser producer, (NYSE: POT)

Norway's Yara and Chicago-based CF Industries are in talks about a merger of equals that would create a $27.5 billion global fertilizer producer to rival world No.1 Potash Corp in an oversupplied and fragmented market.The deal would give Yara, the world's biggest nitrate fertiliser maker, major production units in the United States, where costs are lower due to cheap gas. CF Industries would gain a global footprint through Yara's presence in 150 countries with production assets and a well established distribution network.The two firms' combined market capitalisation of $27.5 billion would put it almost on par with Canada's Potash Corp of Saskatchewan, the world' largest fertilizer firm worth $28.9 billion.The firms said in separate filings that the talks were at an early stage, and there were no assurances that these would result in any transaction.

Potash Corporation of Saskatchewan Inc. (PCS) is an integrated fertilizer and related industrial and feed products company. Shares of POT traded higher by 0.1% or $0.035/share to $34.92. In the past year, the shares have traded as low as $29.95 and as high as $38.58. On average, 3721310 shares of POT exchange hands on a given day and today's volume is recorded at 1679170.