NEW YORK (TheStreet) --Shares of CF Industries Holdings Inc. (CF) are climbing higher by 5.75% to $270.50 on heavy volume in mid-afternoon trading on Tuesday, after it was announced the manufacturer and distributor of nitrogen and phosphate fertilizer products was in talks with Yara International ASA (YARIY) regarding a potential merger, the Wall Street Journal reports.
If it goes through, the merger would create the world's largest producer of nitrogen fertilizers, with over $18 billion in annual sales, the Journal added.
CF Industries and Yara International would have a combined market capitalization of $26.3 billion, the Journal noted.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
The merger would help Norway-based Yara expand its presence in the U.S. market, while allowing CF Industries access to Yara's international distribution network, the Journal said.
The discussions over a possible merger are in the early stages and may not result in a transaction, Yara said in a statement on its website.
Shares of Yara International are higher by 4.23% to $51.29.
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Separately, TheStreet Ratings team rates CF INDUSTRIES HOLDINGS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CF INDUSTRIES HOLDINGS INC (CF) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."