CF Industries Kills Yara Merger
CF Industries Holdings, Inc. (NYSE: CF) shares fell in the extended session Thursday after it dropped plans to merge with Norwegian fertilizer maker Yara International.
CF traded recently at $244, down 3.8 percent.
CF, a fertilizer company, said it failed to come to terms in the deal, first announced last month.
Chief Executive W. Anthony Will said Thursday that deal's failure means CF will forgo "significant operational and structural synergies."
But Will said he's confident that as a free-standing company, its cash flow will increase as capacity expansion projects come on line.
A merger was supposed to have resulted in the world's largest nitrogen fertilizer maker with a combined market cap of $26.4 billion. It was to have added Yara's distribution system in Europe to CF's cost advantage in acquiring natural gas used for production.
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