Source: Yara International ASA

Yara International ASA has signed a cash merger agreement with Terra Industries Inc. at a price of $ 41.10 per Terra share, representing a market capitalization of Terra of $4.1 billion. The transaction will give Yara an improved position in the U.S. and is planned to be supported by a Yara rights issue of $2 billion to $2.5 billion. 

The agreed Terra share price of $41.10 represents a premium of 23.6 percent above the closing price on Feb. 12, 2010.

Following the close of the transaction, Terra will become a wholly-owned subsidiary of Yara and will be called Yara North America. Yara North America will oversee all North American operations for the combined company, including Yara's manufacturing and sales facilities in the United States and Canada.

Original press release from Yara

Original press release from Terra Industries