NEW YORK — US fertilizer-maker CF Industries is reportedly in advanced talks to merge with Amsterdam-listed chemical company OCI. OCI produces natural-gas-based fertilizers and industrial chemicals, and operates production facilities in the Netherlands, Egypt, Algeria, and the US.
In 2014, the company recorded revenues of $2.7 billion with $329 million net income. OCI had a market value of €5.7 billion on July 17. "The companies could come to a decision by the end of the month."
Sources familiar with the matter were quoted by the Wall Street Journal as saying that the companies could come to a decision by the end of the month. However, the terms of a possible deal are unclear, and there is no certainty that a transaction will materialize, sources added.
If a deal is reached, it could be carried out as a so-called inversion, which requires the US company to relocate its headquarters overseas. The latest talks come after CF's attempt to merge with Norway's Yara International last year, to create the world's largest nitrogen-fertilizer company.
However, the companies ended their negotiations as they failed to agree on certain terms.
In 2010, CF completed its largest ever transaction, with the acquisition of Terra Industries for around $4.7bn.
Said to be one of the leading fertilizer manufacturers, CF produces nitrogen fertilizers for the agricultural industry.
The company had revenues of $4.74 billion, with net earnings of $1.39 billion last year. — Agencies
