Agrium buys Unocal's fertilizer interests.(Brief Article)

Agrium has agreed to buy the nitrogen-based production and distribution businesses of the Union Oil Company of California (Unocal). Agrium is paying $325m for the businesses, which include $73m of net working capital, in a mixture of shares, bonds and cash. Unocal will also be eligible for an annual payment for up to six years if ammonia and urea prices rise beyond a certain agreed level.

Unocal's fertilizer sites are all on the US Pacific coast; California, Oregon, Washington State and Alaska. The Kenai, Alaska complex has production capacity of 590,000 t/a of excess a