Shares of fertilizer maker CF Industries (CF) are up $6.17 to $ 61.75 for a gain of 11.10% in midday trading after the company received a $3.6 billion dollar from Canadian competitor Agrium (AGU).

CF Industries acknowleged that it has received the offer and in a statement, said “CF Industries’ board of directors will evaluate the proposal carefully in the context of CF Industries’ strategic plans to create shareholder value, including its offer to acquire Terra Industries Inc. The board will make its determination regarding Agrium’s proposal in due course.”

On Thursday January 15, CF Industries announced its own $2.1 billion bid for Terra Industries (TRA). Terra promptly rejected the bid, saying it undervalues the company. Agrium’s offer is contingent upon CF Industries dropping that bid.

Agrium is offering $76 per share, which is a 37% premium to CF industries closing price of $55.58 on Tuesday. Under terms of the proposed deal, CF Industries shareholders would receive $31.70 in cash, in addition to one share of Agrium for each share of CF Industries.

Wall Street has been skeptical of announced deals of late, as securing financing has become all but impossible. In this case, Agrium has announced that with its current cash on hand, as well as financing commitments from The Bank of Nova Scotia (BNS) and Royal Bank of Canada, it is currently in a position to proceed with the deal.