CF Industries Holdings Inc. said late Aug. 2 that it has entered into a definitive agreement with Glencore International plc to acquire the interests in Canadian Fertilizers Ltd. (CFL) currently owned by Viterra Inc. for total cash consideration of C$915 million, subject to certain adjustments. CFL owns the largest nitrogen fertilizer complex in Canada, located in Medicine Hat, Alberta. CF already owns the majority stake and this will give it 100 percent.
Agrium Inc. was initially to buy the minority CFL interest as part of its deal to buy the bulk of Viterra’s retail assets from Glencore. Agrium reached an agreement for Glencore to make the sale to CF. Agrium said the new arrangement will significantly reduce its costs to buy the retail assets and it will also remove uncertainties, which include regulatory scrutiny. Canadian authorities are yet to approve the Agrium/Viterra purchase and some have complained about Agrium’s stance as both a major producer and major retailer.