The President and CEO of Yara, Tore Holsether, said: “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.”
The acquired plant has a production of 0.7 million tpy of ammonia and 1.2 million tpy of urea, and, in the financial year ended 31 March 2017, generated revenues and profit before tax of US$296 million and US$29 million, respectively. The plant, which was commissioned in 1994, is reportedly India’s most energy efficient urea plant.
The transaction is valued at US$421 million on a debt and cash free basis and comprises a net operating capital value of US$130 million and other assets valued at US$291 million, with the operating capital value subject to post-closing adjustment.
Yara consolidated the acquired business effective 12 January 2018.