CF Industries Holdings Inc. and Keytrade AG (Keytrade) announced late June 26 that the principals of Keytrade, a global fertilizer trading company, have purchased CF’s 50 percent interest in the joint venture.
The companies explained that following the divestiture of CF’s phosphate segment, the nature of the joint business between CF and Keytrade changed. Additionally, as a result of the jv, Keytrade was not able to pursue nitrogen-related business in North America. Following discussions, the principals of Keytrade have decided to purchase all of CF’s interest in the jv in order to allow Keytrade to execute its independent business plan.
"We have enormous respect for Melih Keyman and the rest of the Keytrade organization," said Tony Will, CF president and CEO. "We have a great working relationship and look forward to continuing to work with Keytrade as our preferred international trading partner."
"While our eight-year partnership has created value for both parties, under the new global supply scenario it is important for Keytrade to regain its full flexibility as a private company and be able to pursue the full range of attractive growth opportunities. Changed circumstances required us to exercise our options. We have enjoyed and benefitted tremendously from being partners with CF and look forward to working with them as before," said Melih Keyman, original founder, president and CEO of Keytrade AG.
Prior to this transaction, CF held a 50 percent interest in Keytrade and reported the financial results from CF’s share in the jv under Equity in Earnings of Non-Operating Affiliates—Net of Taxes.