12/01-2018 08:14:25: (YAR) Completion of Yara's acquisition of Tata Chemicals' urea business in India
Completion of Yara's acquisition of Tata Chemicals' urea business in India
Oslo, 12 January 2018: Yara International ASA has completed its acquisition of Tata Chemicals' urea business in India, marking a significant step forward for its growth ambitions in India.
"I am pleased to announce the completion of the acquisition of Tata Chemicals' urea business, which is a major step forward for Yara as we broaden our footprint in the world's second-largest fertilizer market. The inclusion of these assets in our global business will enable us to accelerate our growth in India," said Svein Tore Holsether, President and Chief Executive Officer of Yara.
The acquired plant has an annual production of 0.7 million tonnes ammonia and 1.2 million tonnes urea, and generated revenues and profit before tax of respectively USD 296 million and USD 29 million in the financial year ended 31 March 20171. The plant was commissioned in 1994, and is the most energy-efficient urea plant in India, comparable with Yara's best plants.
The transaction is valued at USD 421 million on a debt and cash free basis and comprises a net operating capital value of USD 130 million and other assets valued at USD 291 million, with the operating capital value subject to post-closing adjustment.
Yara will consolidate the acquired business effective 12 January 2018.
1 Tata Chemicals Annual Report 2016-17, Note 31. Figures are translated to at INR/USD rate of 63.5.
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Yara's knowledge, products and solutions grow farmers', distributors' and industrial customers' businesses profitably and responsibly, while protecting the earth's resources, food and environment.
Our fertilizers, crop nutrition programs and technologies increase yields, improve product quality and reduce the environmental impact of agricultural practices. Our industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. We foster a culture that promotes the safety of our employees, contractors and societies.
Founded in 1905 to solve emerging famine in Europe, today Yara has a worldwide presence, with more than 15,000 employees and sales to about 160 countries.
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Source: Yara International ASA via Globenewswire
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