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TORONTO (Reuters) – Fertilizer maker CF Industries (CF.N) formally launched an exchange offer for all of the outstanding shares of Terra Industries (TRA.N) and said its offer is superior to Yara’s current offer for the company.

Deals

Earlier this week, CF relaunched its hostile bid for Terra, betting that a higher price of $4.75 billion would help it break up Terra’s planned takeover by Norway’s Yara International (YAR.OL).

Terra has said its board will review CF’s latest offer.

“Our offer is far superior to Yara’s in value, timing and certainty of closing,” said CF’s Chief Executive Stephen Wilson, in a statement.

CF’s bid for Terra had already been cleared by regulatory authorities, when it was originally proposed a year ago.

“Any offer from Yara must be heavily discounted since it would take at least four months to close, compared to under 30 days for our offer,” said Wilson.

“Yara`s offer should be discounted further for the significant risks to closing, such as a required two-thirds stockholder vote, required legislative action, and U.S. and European anti-trust approvals,” he added.

CF said its exchange offer will expire on April 2.

CF, which is currently fighting off a hostile takeover attempt from Agrium Inc (AGU.TO), said its offer consists of $37.15 in cash and 0.0953 CF share for each Terra share, or about $47.46 based on Thursday’s closing prices.

The deal would dilute the stake of current CF shareholders and would create one of the continent’s largest producers of nitrogen, an essential fertilizer for farmers.

CF’s shares closed at $108.23 on Thursday on the New York Stock Exchange, while those of Terra closed at $44.80.

(Reporting by Euan Rocha, editing by Dave Zimmerman)