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Yara International ASA — M&A Activity 2016
Aug 10, 2016
3794_iss_2016-08-10_f3d170a6-07b2-4f07-b275-86486ee1a773.html
M&A Activity
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Yara acquires Tata Chemicals' urea business in India for USD 400 million
Yara acquires Tata Chemicals' urea business in India for USD 400 million
Oslo, 10 August 2016: Yara International ASA has entered into an agreement to
acquire the Tata Chemicals Ltd ("TCL") Babrala urea plant and distribution
business in Uttar Pradesh for USD 400 million on a debt and cash free basis,
including normalized net working capital.
"This acquisition represents another significant step in our growth strategy,
creating an integrated position in the world's second-largest fertilizer market.
India has strong population growth and increasing living standards, and
significant potential to improve agricultural productivity," said Svein Tore
Holsether, President and Chief Executive Officer of Yara.
The plant has an annual production of 0.7 million tonnes ammonia and 1.2 million
tonnes urea, and generated revenues and EBITDA of respectively USD 350 million
and USD 35 million in the financial year ended 31 March 2016. The plant was
commissioned in 1994, and is the most energy efficient plant in India, with
energy efficiency on a par with Yara's best plants.
"We are impressed with the world-class operations we have seen in Babrala. The
workforce is committed to high HESQ standards, and has a solid safety track
record. This well operated plant and its highly skilled employees will make an
excellent addition to Yara's global production system," said Holsether.
Yara has operated in India since the 1990s, focusing in recent years on premium
product sales in the West and South of the country, delivering strong volume
growth and margins well above Yara's average for the region.
"Our growth in India can be further accelerated with this acquisition, creating
a larger market footprint for Yara and enabling increased premium product sales
in particular. We will place great emphasis on successful integration of the
operations, and will put in place an integration team consisting of highly
experienced TCL and Yara employees, the latter from both our existing India
operations and our regional management," said Terje Knutsen, SVP and Head of
Yara Crop Nutrition.
The agreement will be subject to regulatory approvals and sanctioning by the
relevant courts in India, a process which is expected to take 9-12 months after
which closing of the transaction can take place.
Contact
Thor Giæver, Investor Relations
Office: (+47) 24 15 72 95
Cell phone: (+47) 48 07 53 56
E-mail: [email protected]
Kristin Nordal, Media Relations - International
Cell phone: (+47) 900 15 550
E-mail: [email protected]
Magnus Karlsrud Dahlen, Media Relations - Norway
Cell phone: (+47) 95 89 19 39
E-mail: [email protected]
Gayatri Kanwar - Indian media contact
Cell phone: (+91) 9910082068
Email: [email protected]
About Yara
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 close to 13,000 employees and sales to more than 150 countries.
www.yara.com
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
[HUG#2034185]