July 20--Deerfield-based CF Industries Holdings confirmed Monday that it is involved in preliminary discussions with OCI NV about a potential business combination.
A statement from the fertilizer-maker followed reports Friday that CF was in advanced talks with Netherlands-based OCI on a merger. The potential combination, first reported by the Wall Street Journal and citing unnamed sources, said the deal could be structured as an inversion, a framework that is growing increasingly popular because it allows U.S. companies to move their headquarters abroad in a corporate tax-saving move.
In its statement Monday, CF said there were no assurances that the discussions would lead to a transaction, and it declined to comment on the matter further.
OCI also confirmed Monday that it was in discussions about a potential combination or transaction but did not identify the company.
Last fall, CF was in merger talks with Norway's Yara International ASA, but the discussions did not produce an agreement. Earlier this month, CF announced it would acquire Yara's 50 percent stake in GrowHow for $580 million, making it a wholly owned subsidiary of CF Industries.
Shares of CF Industries were trading around $65, down about 5 percent from Friday's close of $68.92 a share.
