CF Industries Holdings, Inc. and Keytrade AG announced that the principals of Keytrade, a global fertilizer trading company, have purchased CF Industries’ interest in the joint venture.
Following the divestiture of CF Industries’ phosphate segment, the nature of the joint business between CF Industries and Keytrade changed. Additionally, as a result of the joint venture, Keytrade was not able to pursue nitrogen-related business in North America. Following discussions, the principals of Keytrade have decided to purchase all of CF’s interest in the joint venture in order to allow Keytrade to execute its independent business plan.
“We have enormous respect for Melih Keyman and the rest of the Keytrade organization,” commented Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “We have a great working relationship and look forward to continuing to work with Keytrade as our preferred international trading partner.”
“While our eight-year partnership has created value for both parties, under the new global supply scenario it is important for Keytrade to regain its full flexibility as a private company and be able to pursue the full range of attractive growth opportunities. Changed circumstances required us to exercise our options. We have enjoyed and benefitted tremendously from being partners with CF and look forward to working with them as before,” said Melih Keyman, original founder, president and chief executive officer of Keytrade AG.
Prior to this transaction, CF Industries held a 50 percent interest in Keytrade and reported the financial results from CF Industries’ share in the joint venture under Equity in Earnings of Non-Operating Affiliates—Net of Taxes.