Last week, Agrium Inc. (AGU) announced the acquisition of 24 retail outlets Incorporatedluding 18 farm centers and 6 satellites, from Agriliance. This acquisition has expanded Agrium’s retail operations in Texas and New Mexico.

Along with the 24 retail outlets and associated working capital at these locations, Agrium acquired over 50,000 tons of fertilizer storage. The company expects annual crop input revenues of approximately $150 million from these retail outlets. Through this acquisition, Agrium reaffirmed its commitment to double the size of its retail business.

Further, Agrium stated that it has not lost its focus on acquiring CF Industries Holdings, Inc. (CF). Earlier this month, the company had increased its offer to acquire all of the outstanding shares of CF Industries Holdings, Inc. Under the terms of the offer, stockholders would receive $45.00 in cash ? an increase of $5.00 or 12.5% in the cash consideration ? and one common share of Agrium for each CF share.

Agrium expects to become a global leader in nutrient production and distribution, with a combined crop nutrient production capacity of about 17 million tons, through the CF acquisition. If it succeeds in acquiring CF, Agrium would become the world’s fourth-largest fertilizer producer.

However, CF rebuffed Agrium’s offer, alleging substantial undervaluation of the company. Meanwhile, since the beginning of the year, it has also been pursuing rival Terra Industries (TRA), who has consistently rejected CF’s proposal on the same grounds.

We maintain a Neutral rating on Agrium.

Zacks Investment Research

1. (AGU) Agrium’s Year-Over-Year earnings Declined a Significant 87% on Lower Volumes and PricesAgrium Inc. (AGU) reported adjusted net earnings of 29 cents per share in the third...
2. (POT) Agrium, Inc.: Stock of the Dayby David Fessler, Advisory Panelist, Investment U Time to Load Up on Fertilizer Stocks? Springtime...
3. (AGU) – Agrium – surprised on estimates 3 out of the last 4 quarters by an average of 57.04%Agrium’s stock has been getting beaten up recently in the commodities sell-off but its earnings...
4. (AGU) – Agrium – surprised on estimates 3 out of the last 4 quarters by an average of 57.04%Agrium’s stock has been getting beaten up recently in the commodities sell-off but its earnings...
5. (AGU) – Agrium – surprised on estimates 3 out of the last 4 quarters by an average of 57.04%Agrium’s stock has been getting beaten up recently in the commodities sell-off but its earnings...
6. (AGU) – Agrium – surprised on estimates 3 out of the last 4 quarters by an average of 57.04%Agrium’s stock has been getting beaten up recently in the commodities sell-off but its earnings...

Search Posts by Tag: Agrium Inc. | AGU | CF | CF Industries Holdings | Terra Industries Inc. | TRA | Agricultural Chemicals | Basic Materials

RSS Feeds by Tag: Agrium Inc. | AGU | CF | CF Industries Holdings | Terra Industries Inc. | TRA | Agricultural Chemicals | Basic Materials |

Other Posts by: vitalstocks | RSS Feed for this author