CF Industries Holdings, Inc. and Terra Industries Inc. have entered into a definitive merger agreement to combine the two companies. The transaction has a total value of just over $4.7 billion. The previously announced Terra merger Yara International ASA has been terminated. Yara, the world's largest fertilizer company, had offered $4.1 billion.

In the merger with CF Industries, Terra stockholders will receive $37.15 in cash and 0.0953 of a share of CF Industries common stock for each share of Terra common stock.

"A combined CF Industries and Terra creates a strong leader in the global fertilizer industry with superior assets that will generate long-term value for stockholders, provide more benefits to customers and offer increased opportunities to employees," said Stephen R. Wilson, chairman, president and chief executive officer of CF Industries.

"We are excited to begin working together to become a more competitive global fertilizer player with enhanced scale, a broader strategic platform and enhanced access to capital markets. Our customers will benefit from expanded availability and flexibility of nitrogen product sourcing as a result of the complementary distribution and manufacturing assets of the two companies."

Following the closing of the merger, the combined company will be a global producer and distributor of nitrogen and phosphate fertilizer products and Terra will become an indirect wholly-owned subsidiary of CF Industries.