CF Industries To Pay $150 Mln As It Terminates Proposed Deal With OCI

(RTTNews) - Fertilizer maker CF Industries Holdings, Inc. (CF) Monday said it will pay OCI N.V. (OCINY.PK) $150 million as it terminates the proposed combination of CF and the European, North American and Global Distribution businesses of OCI.

The company noted that the Treasury announcement on April 4 materially reduced the structural synergies of the combination. Since that time, both companies have worked together to explore alternative transactions and structures.

However, the companies were unable to identify an alternative acceptable to both parties and, therefore, agreed to terminate the combination.

Tony Will, president and chief executive officer, CF Industries, said, "Although the original deal created significant value for both parties, changes in the regulatory and commercial environments forced us to re-evaluate the combination and led us to the conclusion that terminating the agreement is in the best interests of CF Industries and its shareholders."

OCI CEO Nassef Sawiris said, "The level of goodwill and collaboration between the two companies has been positive at all levels of management since our discussions started last year, which leads me to believe that in the future we can explore alternative ways of collaboration or structures to create value for our respective shareholders."