LONDON—Fertilizer maker CF Industries Holdings Inc. said Monday
it is in talks with Dutch peer OCI NV about a potential merger with
some of OCI's businesses.
CF Industries didn't provide any details on a potential deal and
said it doesn't plan to comment further at this stage. It cautioned
there could be no assurance the talks would lead to a deal.
Separately, OCI confirmed it is in talks "about possible
combinations or transactions," but didn't mention CF Industries. It
also said it wouldn't comment further at this stage and warned the
talks may not lead to a deal.
The Wall Street Journal on Friday cited people familiar with the
matter as saying that CF Industries was in advanced talks with OCI
on a merger, as chemical companies join a global takeover wave.
CF Industries operates nitrogen-manufacturing complexes in the
central U.S. and Canada, and distributes plant nutrients through a
system of terminals, warehouses and associated transportation
equipment located primarily in the Midwestern U.S.
OCI produces nitrogen fertilizers, methanol and other natural
gas-based products, serving agricultural and industrial customers
from the Americas to Asia. It expects total production capacity to
reach 12.5 million metric tons by 2017.
CF Industries is valued around $16.22 billion, based on its
closing share price Friday, while OCI is valued around €6.25
billion ($6.77 billion). OCI's shares are trading 10% higher early
Monday at €29.73.
Write to Ian Walker at ian.walker@wsj.com
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