Canceled plans

Staff Writer
Donaldsonville Chief
CF Industries, Donaldsonville

CF Industries, set to ink a $6 billion deal with OCI in the Netherlands, was on its way to becoming the world's largest nitrogen fertilizer plant, however plans have changed.

The plant, located in Donaldsonville, has dropped plans to acquire the distribution networks of Netherlands-based OCI - a combination that would have created one of the world's largest nitrogen fertilizer companies.

In a release, CF Industries officials noted that while the original deal created significant value for both parties, new tax laws would have overshadowed the success. Under the cancellation, CF Industries must pay OCI a $150 million termination fee, however if continued through with the proposed deal, CF Industries would have acquired about $2 billion in debt.

Already the country's largest nitrogen complex in North America, CF Industries - employer to 450 permanent workers and 500 contract workers - still has a $2.1 billion expansion underway and its current operations can produce 5 million tons of nitrogen products per year. The proposed deal would have increased the company's nitrogen capacity by 18 percent.