Sector News

CF Industries and OCI confirm discussions regarding possible merger

July 20, 2015
Chemical Value Chain
OCI NV (Amsterdam) and CF Industries on Monday confirmed that they are holding discussions about possible combinations or transactions of their businesses. “There can be no assurance that these discussions will result in a definitive agreement. OCI does not intend to further comment on these matters at this stage and will make future announcements if and when appropriate,” OCI said in a statement.
 
CF Industries said that it is in preliminary discussions with OCI NV regarding a potential combination involving certain of OCI’s businesses. “There can be no assurances that these discussions will result in any transaction,” CF Industries said.
 
Last week the Wall Street Journal reported that CF Industries is in advanced merger talks with OCI NV, citing “people familiar with the matter.”
 
OCI is a leading global nitrogen fertilizers and methanol producer with plants in the Netherlands, the United States, Egypt and Algeria. Its current combined capacity is 8.4 million m.t./year, which is due to rise to 12.6 million m.t./year by 2017. The company is adding capacity at its Sorfert fertilizer subsidiary in Algeria and is due to complete construction in the fourth quarter of this year of Iowa Fertilizer Co., a world scale greenfield nitrogen fertilizer complex. The complex will be designed to produce 420,000 m.t./year of urea and 1.5 million m.t./year of urea ammonium nitrate and will have 195,000 m.t./year surplus ammonia for sale on the market. In addition, OCI is establishing Natgasoline, a greenfield methanol facility with capacity for 1.75 million m.t./year, which is expected on stream in 2017 at OCI’s site near Beaumont, TX.
 
CF Industries is a global leader in nitrogen products, serving both agricultural and industrial customers. It operates manufacturing complexes in central United States and Canada. The company is in the process of buying Yara International’s 50% stake in their GrowHow fertilizer joint venture in the United Kingdom. CF Industries also owns an ammonia production facility in Trinidad. 
 
CF Industries’ statement that it is considering a merger of certain businesses, may imply that methanol will not be included in the transaction as CF Industries does not make the product. OCI’s methanol capacity will rise to 3.12 million m.t./year in 2017. The company recently gained a foothold in the European methanol market by acquiring BioMCN, which owns a 440,000-m.t./year plant at Delfzijl, Netherlands. 
 
Analysts say that a deal could be structured as a so-called tax inversion, in which the US company would move its domicile to another country. In 2014, CF Industries generated sales of $4.7 billion while OCI’s revenues reached $2.7 billion.
 
By Natasha Alperowicz
 

comments closed

Related News

November 28, 2021

Synthomer appoints new CFO

Chemical Value Chain

Synthomer announced the appointment of Lily Liu as Chief Financial Officer (CFO). Lily will take up the role no later than 1 July 2022, succeeding Steve Bennett who announced in August 2021 that he would step down once a suitable successor was in place.

November 28, 2021

Westlake to acquire Hexion’s epoxy business for $1.2 billion

Chemical Value Chain

Westlake Chemical (Houston, Texas) has reached agreement to acquire Hexion’s (Columbus, Ohio) epoxy business for approximately $1.2 billion. Westlake says the deal enhances chlorine and olefins integration and brings attractive opportunities in high-growth epoxy markets, including wind turbine blades, automotive lightweighting, aerospace and consumer coating applications.

November 28, 2021

Tetra Pak and Appetite Creative drive brand-consumer engagement with gamified carton experiences

Chemical Value Chain

Tetra Pak Iberia is launching a gamified app experience in partnership with digital studio Appetite Creative. The technology is enabled though scannable QR codes printed on drinking cartons and available to all brands in Southern Europe.

Send this to a friend