Sinking crop prices and frenzied output growth by nitrogen fertilizer producers have sparked nearly $10 billion worth of deals in the fragmented sector and signal more consolidation may be ahead in the largest of three crop nutrient markets.

 

Illinois-based CF Industries Holdings Inc., the world's third-largest nitrogen fertilizer producer, was involved in three of four deals in the past month, taking out two potential competitors in its backyard and locking up sales volumes in the United States, the world's No. 1 corn-producing country.

 

"What CF is doing is classic corporate self-preservation in a world where there are well-financed people trying to get into their core Midwest and U.S. Gulf Coast nitrogen market," said Chris Damas, editor of the BCMI Report on markets.

 

Click Here to read more.