Yara refuses to raise Terra bid; sees other acquisitions

Yara refuses to raise Terra bid; sees other acquisitionsYara has declined to raise the bid for Terra Industries and has moved out of the bidding process.

Chief Executive of Yara, Joergen Ole Haslestad said in a statement that the takeover may be very beneficial for the company, but no way is it going to raise the price of its bid.

He said that the takeover at current valuations is very attractive, but they make lesser sense if the bid price is increased to the level of rival bidding.

Haslestad further added that the consolidation in the fertilizer sector in inevitable. The information was released to private news agency, Reuters. The options may be limited as of now, but the things will become better later. And then more acquisition will on company's cards.

Last month, Yara had offered to buy Terra for $4.1 billion. Had this deal taken place, it would have created world's largest fertilizer producer. This would have also given the Norwegian company access to the US market. But, on Wednesday, Terra said that it would be accepting a "superior" bid. It was for $4.68 billion and was made by CF Industries Holdings Inc.