Terra To Buy Stake In Agrium Plant, On Conditions

SIOUX CITY, Iowa (AP) — Agrium Inc. on Monday said it will sell part of its Carseland nitrogen facility to fertilizer maker Terra Industries Inc. in an effort to deal with regulatory concerns related to its proposed hostile takeover of CF Industries Holdings Inc.

The sale is conditional on Agrium acquiring fertilizer company CF and Terra raising of $600 million of debt capital, the companies said.

Terra will pay $250 million in cash for certain U.S. assets and a 50 percent stake in the facility in Carseland, Alberta, which has an annual capacity of 590,000 short tons of gross ammonia and about 750,000 short tons of granular urea.

Agrium believes this agreement will address regulatory concerns under Canadian competition law related to its offer to acquire CF.

Terra said the purchase will provide greater exposure to cheaper natural gas, a more diverse geographic footprint in North America and ownership in a facility that produces upgraded ammonia-based products, which is part of the company's long-term strategy.

This deal is the latest move in a lengthy acquisition saga between Agrium, CF and Terra.