(Terra Industries-CF Industries article updated with stock movement and closing stock prices for both companies, as well as additional details on the the potential transaction.)

NEW YORK (

TheStreet

) --

CF Industries

(CF) - Get Report

has offered to acquire

Terra Industries

(TRA)

for a higher bid than one Terra agreed to with Norway's

Yara International

.

CF Industries is offering $37.15 in cash and 0.0953 a share of CF Industries common stock for each Terra share. The offer has a total value of $47.40 a share based on CF Industries closing price on Monday.

CF Industries said it has received $4.05 billion of financing commitments and the offer isn't subject to financing. CF said it intends to begin an exchange offer for Terra shares scheduled to expire on April 2.

"We withdrew our prior offer because we believed that Terra was unwilling to agree to a sale. Now that Terra is for sale, we have made an offer that is superior to Yara's substantially lower, highly conditional offer," CF Industries CEO Stephen Wilson said in a statement.

Yara last month

agreed to acquire Terra Industries

for $4.1 billion, or $41.10 a share.

The stocks of both companies have been changing hands swiftly on the news. CF Industry stock dropped by 1.3%, or $1.43, to $106.11. More than 6.2 million shares of CF Industries changed hands, versus an average daily trading volume of roughly 1.3 million shares.

Terra Insutries, meanwhile, jumped more than 10.8% on the day to finish at $45.63, an increase of $4.43. Roughly 35 million shares of Terra traded hands Tuesday, versus an average daily turnover of roughly 6.8 million shares.

-- Reported by Andrea Tse in New York

RELATED STORIES:

>>Norway's Yara Buys Terra for $4.1B

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