Agrium drops CF bid

Calgary-based fertilizer giant Agrium Inc. said Thursday it is dropping its hostile $5.5 billion US takeover bid for American rival CF Industries Holdings Inc.

CF's directors had rebuffed Agrium's offer for more than a year, while they pursued a third fertilizer company, Iowa-based Terra Industries Inc.

CF, based in Deerfield, Ill., passed an important hurdle on Wednesday in its $4.7 billion pursuit of Terra when Terra directors declared that its bid was superior to a competing $4.1 billion offer from Norway's Yara International.

Agrium, which had made its offer contingent on CF dropping its bid for Terra, said Thursday it will let its offer expire later this month.

Both Agrium and CF want a bigger share of the market at a time when fertilizer companies are cheap because their share prices have suffered with the downturn.

At the same time, global demand is expected to grow, as developing countries become more prosperous and people consume more meat.