CF Finally Lands Its Prey, Inks $4.7 Billion Deal With Terra

   DOW JONES NEWSWIRES 
 

Terra Industries Inc. (TRA) has finalized a deal to be acquired by larger rival CF Industries Holdings Inc. (CF) for $4.7 billion, ending a yearlong battle between the fertilizer makers.

The announcement came hours after Norway's Yara International ASA (YAR.OS) said it wouldn't raise its $4.1 billion bid for Terra, which was trumped last week by CF.

Terra holders will get $37.15 and 0.0953 share of CF for each share of Terra, valuing the stock at $46.74 based on Thursday's closing price. Its shares were down 1.3% to $46.30, while CF fell 3.8% to $96.83.

The companies anticipate annual cost savings of $135 million.

Rising commodity prices have sparked a flurry of deals in the crop-nutrient sector in recent weeks, and Terra's focus on nitrogen-based products has kept it among the most attractive operators. It has outperformed peers, with its share price doubling since November.

Yara will get a $123 million break-up fee for its deal with Terra falling through.

-By Kevin Kingsbury; Dow Jones Newswires; 212-416-2354; [e-mail]