The US fertilizer maker CF Industries Holdings yesterday said it was in talks about a potential merger with some businesses of OCI, a fertilizer and industrial chemicals maker in the Netherlands.
“CF Industries Holdings today confirmed that it is in preliminary discussions with OCI regarding a potential combination involving certain of OCI’s businesses,” said the US firm.
“There can be no assurances that these discussions will result in any transaction.”
OCI confirmed that it was in talks with an unnamed counterpart.
OCI produces nitrogen fertilizers, methanol and other natural gas-based chemical products, which are used by agricultural and industrial customers. It has operations in the Netherlands, the US, Egypt and Algeria.
The company can produce about 8.4 million tonnes of nitrogen fertilizers and industrial chemicals a year, and is targeting to reach a capacity exceeding 12.5 million tonnes by 2017.
Shares of OCI, which has a market capitalisation of €6.6 billion (Dh26.3bn), soared 16 per cent to €31.30 in Amsterdam yesterday following news of the merger talks.
Shares of CF industries, which has a market capitalisation of US$16.2bn, rose 10 per cent last Friday in New York to close at $68.92.
In March, OCI spun off its engineering and building business from its fertilizers and chemicals unit.
That led to the listing of Orascom Construction on Nasdaq Dubai and the Egyptian Stock Exchange.
dalsaadi@thenational.ae
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