One of the world's largest fertilizers producers, Norway's Yara International, has agreed to buy Terra Industries for $4.1 billion, in a bid to boost its presence in the United States.

The Norwegian government owns 36.2 percent of Yara. Cravath, Swaine & Moore LLP and Wachtell, Lipton, Rosen & Katz are its legal counsel.

Yara's values Terra at $41.1 per share and represents a premium of 23.6%

Norway's national insurance fund Folketrygdfondet, having 6.57% in Yara, has agreed to subscribe its pro rata share of the issue.

Sioux City-based Terra Industries Inc, the fertilizer producer, rejected revised takeover offer tabled by CF Industries.

Terra said that the revised offer included the same terms as the bid made on November 1, with a 30-day 'go shop' provision.

CF's November 1 offer was for $32 in cash, which included a special dividend of $7.50 per share, and 0.1034 of a CF common share against each Terra share.