Yara Intl' Shares Up On Merger Of Equals Talks With CF Industries - Update

(RTTNews) - Shares of Yara International ASA (YARIY.PK) increased around 9 percent in the morning trading in Oslo after the Norwegian fertilizers group confirmed that it is in discussions with U.S. peer CF Industries Holdings, Inc. (CF) regarding a potential merger of equals transaction.

In a statement, CF also confirmed their preliminary discussions.

The companies noted that the discussions are at an early stage, and there can be no assurances that these discussions will result in any transaction.

In August, Yara agreed to acquire a 60 percent stake in Galvani Indústria, Comércio e Serviços S/A, for an enterprise value of $318 million. Galvani, an independent, privately-held fertilizer company, controlled by Brazilian entrepreneur, Rodolfo Galvani Jr., is engaged in phosphate mining, Single Super Phosphate production and distribution of fertilizers in the center and northeast of Brazil.

Meanwhile, CF Industries in March had sold its phosphate business to The Mosaic Co. (MOS) for $1.4 billion. The sale included a 25,000-acre phosphate mine and beneficiation plant, a phosphate manufacturing facility and an ammonia terminal and finished product warehouse facilities in the Tampa area.

Yara recently reported strong second-quarter results, with improved European commodity margins due to lower gas price. Yara President and CEO Jørgen Ole Haslestad then said that margin improvements more than offset the volume impact of an earlier end to the season in Europe.

In its second quarter, CF Industries' net earnings declined with a 14 percent drop in total net sales.

Yara recently appointed Norsk Hydro ASA's (NHY, NHYDY.PK, NHYDY.PK) President and CEO Svein Richard Brandtzæg, as its new President and Chief Executive Officer, effective early 2015.

In Oslo, Yara shares were gaining 8.72 percent to 340.20 Norwegian kroner.

On the NYSE, CF shares closed Monday's trading at $255.78, down 1.01 percent.