Source: Agrium news release

Agrium Inc. announced that it has submitted a proposal to the board of directors of CF Industries Holdings Inc. to acquire all of the capital stock of CF for cash and Agrium shares at $72 per CF share, or a total of approximately $3.6 billion, based on yesterday's closing price of Agrium shares.

The proposal represents a premium of 30 percent over CF's closing price on Feb. 24, and a premium of 42 percent over the 30-day volume-weighted average share price of CF.

Under the terms of the proposed transaction, stockholders of CF would be entitled to receive one Agrium common share and $31.70 in cash for each CF share. Of the total consideration, approximately 56 percent would be in Agrium common shares and 44 percent would be in cash.

"The proposed transaction is strategically compelling and a superb opportunity to create value for both Agrium and CF shareholders," Agrium President and CEO Mike Wilson said. "Adding CF's strong North American nitrogen, phosphate and extensive crop nutrient distribution assets to Agrium's broader global wholesale and retail capabilities would greatly enhance our existing portfolio and enable us to create a premier global franchise across the entire agricultural value chain. We will have combined revenues of nearly $14-billion and become a global leader in nutrient production and distribution. The acquisition would also triple our phosphate and UAN capacity and further strengthen all aspects of our business.

"We expect to achieve significant operating synergies