Canadian regulators won't challenge CF-Terra deal

DEERFIELD, Ill.

CF Industries said Wednesday that Canadian regulators do not intend to challenge its $4.7 billion takeover of Terra Industries, a deal that would create one of the world's biggest fertilizer companies.

On March 12, CF and Terra signed a deal that would give Terra stockholders $37.15 in cash and nearly one-tenth of a CF common share for each Terra share they own.

Both companies have fertilizer operations in Canada. Terra owns a plant in Ontario and CF operates a facility in Alberta.

The deal ended a long takeover fight. Terra had repeatedly rejected CF's previous offers. CF, based in Deerfield, Ill., had vowed to end its hostile bids, but went back on the offensive after Terra, based in Sioux City, Iowa, agreed to be bought by Norway's Yara International.

Terra and CF have combined annual revenue of $4.2 billion. CF and Terra say the deal will save them around $135 million each year because they will be able to cut overlapping transportation and corporate costs.

Shares of CF Industries Holdings Inc. fell $1.24 to close at $91.18 Wednesday afternoon. Terra Industries Inc. shares finished 12 cents lower at $45.76.