CF Industries, Yara International in talks to create global fertilizer behemoth

CF Industries is in preliminary talks with Norway's Yara International about a possible merger that would create a mammoth player in the fertilizer industry.

The combined company would have a market capitalization of more than $26 billion, second only to Potash Corp. of Canada.

Yara International ASA confirmed the talks Tuesday, but both companies say there is no guarantee that a deal will be completed.

A tie-up with CF Industries Holdings Inc., based in Deerfield, Illinois, could give Yara easier access to cheap natural gas supplies, which is a major feedstock in the industry.

Shares of CF Industries are up 6 percent before the opening bell.