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Updated from 11:30 AM EDT.

NEW YORK (TheStreet) -- Shares of CF Industries (CF) were climbing in mid-afternoon trading on heavy volume Tuesday as competitors Potash (POT) and Agrium (AGU) are in preliminary talks to merge. 

Potash stock was spiking 12.34% to $18.03 this afternoon and shares of Agrium were up 6.2% to $95.03. 

"No decision has been made as to whether to proceed with such a combination, no agreement has been reached, and there can be no assurance that any transaction will result from these discussions," Agrium said in a statement. 

Earlier today, Bloomberg reported that the fertilizer companies were planning to combine and a deal could be announced as soon as next week.

Shares of Mosaic (MOS) were surging 9.02% to $30.47 this afternoon, while Intrepid Potash (IPI) stock was soaring 12.21% to $1.47 .

The possible combination comes as fertilizer companies face declining crop prices, which have prompted lower spending by farmers. In the past year, spot potash prices in the U.S. corn belt have dropped 34%, Bloomberg noted.

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CF Industries is a Deerfield, IL-based manufacturer and distributor of nitrogen fertilizer and other nitrogen products.

Roughly 9.96 million of CF Industries' shares were traded so far today vs. its average volume of 6.03 million shares per day.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on CF Industries stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.

But the team also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: CF

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