Two major mergers have been announced in the last seven days – CVR Partners with Rentech, and CF Industries with OCI.
It’s fair to say that the competitive landscape for ammonia will soon change, but you could look at both these transactions as companies running fast to stay still.
Any gain in market share caused by each merger is likely to be short-lived, because there are no less than 15 expansion projects already under construction, with more yet to get underway.
Any market share projections that fail to take these expansions into account will be short-sighted, so I’ve put together some charts, derived from my database, which I hope explain the situation.
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