SERGEANT BLUFF | CF Industries, in a midst of a $1.7 billion enlargement of a Port Neal complex, has started rough talks with Norway’s Yara International about a intensity partnership that would form a widespread actor in a tellurian manure sector.
The total association would have a marketplace capitalization of some-more than $26 billion, second usually to Potash Corp. of Canada. But it would have annual sales of about $20 billion, roughly 3 times that of Potash.
Yara International ASA reliable a talks Tuesday, though both companies contend there is no pledge that a understanding will be completed.
CF, headquartered in Deerfield, Ill., acquired Sioux City-based Terra Industries in Mar 2009 in a antagonistic takeover that lasted 14 months. CF clinched a $4.6 billion understanding after Yara, a accessible suitor, refused to compare or surpass CF’s cash-and-stock offer for Terra.
Producing manure is an intensely energy-intensive process, and healthy gas is a outrageous feedstock in a industry. A tie-up with CF could give Yara easier entrance to inexpensive U.S. healthy gas supplies.
And partnership talks between a dual are occurring in a midst of a tellurian rural boom.
The U.S. Department of Agriculture this month pronounced that corn and soybean farmers will reap a largest collect ever this year. There is an assertive pull to ramp adult pellet and stock prolongation in China, India and other building countries around a globe.
While a understanding could close in inexpensive appetite prices for Yara, it would open adult tellurian markets to CF. Yara has a broad, tellurian presence, with comforts and warehouses in dozens of countries and sales to some-more than 150 countries.
CF concentrates on nitrogen manure prolongation and distribution. It has 7 nitrogen manure prolongation complexes in a executive U.S. and Canada and a network of manure placement terminals and warehouses mostly in a Midwest.
The association is spending a total $3.8 billion to enhance prolongation during Port Neal, only south of Sergeant Bluff, and a trickery in Donaldsonville, La.
The Port Neal expansion, scheduled for execution in 2016, will triple a complex’s prolongation of ammonia, a simple building retard for nitrogen-based fertilizer. It’s approaching to emanate some-more than 100 permanent jobs, doubling CF’s Port Neal workforce, and between 1,500 and 2,000 construction jobs.
The Associated Press contributed to this story.