Shares in Agrium and Yara International – the losers of the fertilizer sector's four-way takeover battle - jumped on Friday as investors applauded their decision to eschew potentially expensive deals.
Stock in US-based CF Industries fell 5% after it won its year-long quest to buy rival Terra Industries with a $4.7bn bid, trumping rival suitor Yara International.
Terra stock also fell, after Yara's refusal to return with a sweetened bid disappointed some investors.
However, shares in Yara soared 7%, as did those in Canada's Agrium, which ditched a year-long quest for CF.
While Agrium declined to give a reason for its withdrawal, its bid had been conditional on CF failing to secure Terra.
'Good capital discipline'
Analysts at Canada's National Bank said they viewed Agrium's move "favourably", after CF's "pricey" $4.7bn bid for Terra raised the bar on acquisition prices in the fertilizer sector.
"Offering the same multiple for CF, would have required Agrium to pay as much as $133 a share," implying that Mr Wilson lifting his bid by a further 30%.
Meanwhile, Yara's decision not to raise its $4.1bn offer was welcomed as "positive" by analysts at Pareto Securities in Oslo, a sentiment echoed by London-based Icap.
"It shows that management has exercised good capital discipline," Icap said.
"Moreover, we see a number of other potential deals to be done in the nitrogen fertilizer space, which still remains heavily fragmented."
'More opportunities'
Yara said it that while it was continuing to make "all appropriate efforts" to put a Terra takeover back on track, these stopped short of sweetening its all-cash bid.
Terra's decision to switch its favour to CF's bid entitles Tara to a $123m break fee.
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