More merger to come in chemical's select sub-sectors

Large chemical companies posted earnings declines or even losses in the fourth quarter of 2008; however, fertilizer producers like CF and Terra both reported big gains. Fertilizer is one of the few sub-sectors are doing well and some of them are trying to merge with each other (typical consolidation). For example, Agrium bids $3.6 billion for CF Industries, which had offered to buy Terra Industries for $2.1 billion. It would be interesting to see other consolidation efforts in the industry (e.g. Pharma, petrochemical …. etc.)