CHS To Purchase Minority Interest In CF Nitrogen; To Form Strategic Venture

(RTTNews) - CF Industries Holdings, Inc. (CF) and CHS Inc. (CHSCP) announced they have agreed to enter into a strategic venture. CHS will purchase a minority equity interest in CF Industries Nitrogen, LLC for $2.8 billion and be entitled to semi-annual profit distributions from CF Nitrogen. CHS will also enter into a supply agreement, under which, CF Nitrogen will sell annually to CHS up to 1.1 million tons of granular urea and 580,000 tons of UAN, at market prices.

"Entering nitrogen fertilizer manufacturing through the purchase of a minority ownership in CF Nitrogen is the single largest investment in CHS history," said Carl Casale, president and CEO, CHS Inc.