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Yara Seeks CF Merger for $20 Billion in Fertilizer Sales

Yara International ASA (YAR) is in merger talks with CF Industries Holdings Inc. (CF) to create the world’s largest fertilizer supplier with $20 billion in sales and expand in North America.

Discussions are at an “early stage,” with no guarantee of a transaction, the company said in a statement. Oslo-based Yara’s stock rose as much as 10 percent in Norway trading, increasing the company’s market value to about $14.5 billion, compared with CF Industries’s $12.7 billion.

“At the end of the day you’ll find that Yara is better positioned” to be the leader in a combination of the two companies, Patrick Lambert, an analyst at Nomura International Plc, said by phone. “It’s a global market and CF is just a U.S. company.”