Bait and switch – Salt and Fertilizer Producers are busy in merger talk … (K+s/Compass, Agrium/CF, Asahi Kasei/Mitsubishi, Morton Salt)

Fertilizer company Kali and Salz (K+S) has reportedly delayed making an offer for Compass Minerals International due to Compass’s shares rising on rumors of the possible bid, according to Financial Times Deutschland (Hamburg). K+S would likely have offered about $2.4 billion in cash, or about $78/share, for Compass in a deal that would create the world’s largest salt producer...

Dow Chemical has announced their intention to sell R&H’s Morton Salt unit as well.

Agrium turned up the heat on its $3.6-billion hostile bid to acquire CF Industries after the CF board of directors rejected its offer earlier this month. Agrium says that CF’s refusal to engage in discussions has “left it no choice” but to approach CF stockholders directly. Meanwhile, CF sweetened its $2.1-billion bid for Terra Industries after Terra rejected the offer, and CF has filed materials with the SEC in connection with its proxy fight to install three independent directors to Terra’s board. Terra rejected CF’s most recent bid, saying that being acquired by CF “runs counter to Terra’s strategic objectives, substantially undervalues Terra both absolutely and relative to CF, and would deliver less value to shareholders” than operating Terra as a stand-alone firm.

Asahi Kasei Chemicals (AKC), an Asahi Kasei subsidiary, says it has reached an agreement with Chisso (Tokyo) and Mitsubishi Chemical for the consolidation of the fertilizer businesses operated by their Chisso-Asahi Fertilizer and Mitsubishi Chemical Agri affiliates. The companies have initiated detailed studies for the consolidation but did not disclose the form the consolidation might take.

Interesting activities in an interesting economic time!