CF Industries seals $4.7 billion deal for Terra

NEW YORK -- After more than a year of bids and counterbids, CF Industries landed Terra Industries on Friday for $4.7 billion, creating a giant fertilizer company.

The announcement came just hours after Norway's Yara International said it would not top the latest bid by CF Industries.

The deal has been approved by the boards of both companies.

Terra Industries Inc., based in Sioux City, Iowa, said it has officially ended negotiations with Yara, which had offered $4.1 billion.

Earlier this week, Terra notified both companies that it favored the bid from CF, which amounts to $37.15 in cash per share and nearly one-tenth of a share of common stock for each Terra share.

Terra gave Yara five days to decide if it would bid again, but the company gave its response in two.

Terra had repeatedly rejected CF's previous offers. CF had vowed to end its hostile bids, but went back on the offensive after Terra agreed to Yara's deal. CF is based in Deerfield.

Shares of CF Industries Holdings Inc. fell $4.48, or 4.4 percent, to $96.13. Terra's stock fell 68 cents, or 1.4 percent, to $46.22.

Terra clients are largely industrial, while CF Industries focuses on agricultural customers.