DJ New Inversion Rules May Trouble Fertilizer Tie-Up -- Market Talk
10:44 ET - The latest Treasury curbs on inversions look troublesome for fertilizer heavyweight CF's proposed merger with Netherlands-based chemical firm OCI (OCI.AE), says Citi. It notes while CF hasn't "explicitly" outlined drivers of its anticipated $500M in deal synergies, the company did say last month it expects the combined company's tax rate to drop to 20-23% from CF's current level of about 35%. Citi adds Treasury's new rules on "income stripping"--shifting profits to low-tax countries--looked particularly concerning for the deal. CF eases 0.7% amid the broader market's pullback while OCI drops 3.8% in Amsterdam.