SA Transcripts • Oct. 22, 2014
Yara: An Undervalued Scandinavian Fertilizer Giant
- A recent slump in fertilizer prices means the industry has fallen out of favor.
- Yara is both undervalued and institutionally under-followed.
- The Norwegian state's partial ownership in the company limits the potential downside.
- The future thus looks bright for Yara.
Yara International Offers A Tricky Balance Of Quality And Value
- Urea prices have plunged as Chinese producers operate at a loss, but higher-value nitrates have done considerably better.
- Yara is targeting South America and specialty fertilizer products for fruits and vegetables to drive growth and higher margins.
- Sell-side analysts are generally down on Yara, but if 2014 is truly a trough year, the shares could still have upside into the mid-$50s.
Oct. 16, 2014, 6:35 PM
- CF Industries (NYSE:CF) and Yara International (OTCPK:YARIY) have terminated merger talks that would have created the world's largest maker of nitrogen-based crop nutrients.
- “Although we identified very significant operational and structural synergies, we were ultimately unable to agree on terms of a transaction that met the requirements of all our respective shareholders,” CF says.
- CF and Yara said Sept. 23 that talks toward a “merger of equals” were at an early stage.
- CF -3.1% AH.
Oct. 7, 2014, 7:52 AM
- Yara International (OTCPK:YARIY) says Jorgen Ole Haslestad has resigned as CEO amid merger talks with CF Industries (NYSE:CF), and has appointed Torgeir Kvidal as acting CEO.
- Yara and CF Industries said last month they were in merger talks to form the world's biggest producer of nitrogen fertilizers, but Yara says Haslestad "would not have a role in a potential merged company."
- Kvidal has been Yara's CFO since 2012 and joined Norsk Hydro in 1991, before the Yara de-merger in 2004; Haslestad has been CEO since 2008, and had said he planned to retire when Yara appointed a new CEO.
Sep. 23, 2014, 5:58 PM
- Talks that could lead to the creation of a new fertilizer producing giant are the latest example of how the boom in natural gas from fracking is transforming not just the world of U.S. energy but other industries too, a Bloomberg analysis says.
- CF Industries (NYSE:CF) and Yara International (OTCPK:YARIY) said today they’re in preliminary talks about a merger, and both companies use gas to capture nitrogen from the air to make crop nutrients; the advantage of doing that in the U.S. is stark, as CF’s operating profit margin was 43% last year vs. Yara’s 9.2%.
- Yara needs to have a meaningful business in the U.S. to become a global player; CF’s motivation in talking to Norway-based Yara may be to expand beyond the U.S. in anticipation of rising domestic fertilizer supplies, which may put pressure on prices.
- A combined CF-Yara would have ~$19B in sales, more than any other fertilizer company.
Sep. 23, 2014, 7:20 AM
- Yara International (OTCPK:YARIY) is in talks with CF Industries (NYSE:CF) about a possible merger of equals, a deal that would create a fertilizer giant with a market value of over $27B.
- "The discussions are at an early stage, and there can be no assurances that these discussions will result in any transaction," says Yara in a filing.
- Norway's government and possibly parliament would have to approve of any deal, as the state holds 36.2% of Yara, plus an additional 5% through state pension fund Folketrygdfondet.
Dec. 7, 2012, 6:36 AM
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