Aug 2 Fertilizer producer CF Industries Holdings
Inc said it inked a deal with Glencore International
to buy a minority stake in Canadian Fertilizers Ltd
(CFL) owned by Viterra for C$915 million ($911 million) in cash.
The deal will give U.S.-based CF Industries full control of
Canadian Fertilizers, which owns Canada's largest nitrogen
fertilizer complex, located in Medicine Hat, Alberta.
It replaces a previous agreement under which Glencore
planned to sell the stake in Canadian Fertilizers to farm
products retailer Agrium Inc, a deal which had raised
competition concerns among Canadian farmers.
CF Industries said the purchase of about 34 percent of CFL's
outstanding stock would add about 425,000 gross tons of ammonia
and 275,000 tons of urea per year to its nitrogen production
capacity in a region with low natural gas costs.
Early this year, Glencore agreed to acquire all of the
outstanding shares of Viterra in a deal valued at C$6.1 billion.
Glencore's takeover of Viterra still requires approval by
some regulators, but has been approved by Canadian authorities.
Glencore had agreed to sell some Viterra assets to Agrium and
grain handler Richardson International Ltd, which still needs
approval by Canada's Competition Bureau.
Agrium's purchase of the stake in the fertilizer plant was a
sore point with Canadian farmers, who feared Agrium would gain
too much control over the production of nitrogen fertilizer.