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Norway's Yara International ASA (YAR.OS) will continue its search for consolidation opportunities, despite losing out on a deal to buy U.S. fertilizer producer Terra Industries Inc. (TRA), a Yara executive said Friday.

Calling Yara's failed $4.1 billion bid for Terra "a slight setback in North America," Chief Financial Officer and Head of Strategy Hallgeir Storvik said there were still opportunities for the company there.

"We expect further restructuring...We will now take a break, but we will evaluate (any opportunities) in the future," Storvik said.

Yara agreed the merger deal was trumped last week by a cash and share offer worth $4.72 billion from long-time suitor CF Industries Holdings Inc. (CF), which on Wednesday Terra deemed "superior" to Yara's friendly cash bid.

Yara was given five days by Terra to consider raising its bid but earlier Friday said it wouldn't change its valuation of the U.S. company, effectively ending its chase.

Yara received formal notification from Terra that the merger agreement had been terminated, which entitles the company to a $123 million break fee.

Storvik said further consolidation, on a global scale, is expected in the industry. Still, he said much of the focus remains on the North American market, making reference to the presentation Yara made when announcing the proposed Terra deal.

"There are things in the global market, in relation to North America, that a (pure) regional player cannot do...We still want to increase our presence in North America," he said.

Storvik said the battle for Terra shows that the fertilizer business is regarded as an attractive business, and that the interest to take part in the fertilizer value chain has increased considerably.

"I think the basic situation, that this industry is attractive, is a sound basis" for the future, Storvik said.

At 1422 GMT, Yara shares in Oslo were NOK18.70 higher, or 7.8%, at NOK257.80, outperforming a 1.2% rise in Norway's OBX index.

Company Web site: http://www.yara.com

-By Karl Bruze, Dow Jones Newswires; 46 8 545 130 95; karl.bruze@dowjones.com