Yara sells Its 25% in Qatar Fertiliser Company JV for $1 billion
By: ICN Bureau
Last updated : March 11, 2020 9:29 am
The parties have agreed on a purchase price of USD 1 billion for Yara’s shares in QAFCO. The transaction is conditional on obtaining necessary local regulatory approvals and customary closing conditions
Yara International has signed a share purchase agreement with Qatar Petroleum (QP) to sell its 25% share in Qatar Fertiliser Company (QAFCO) for $1 billion. The transaction will mark the conclusion of a long-standing and highly value-creating partnership.
Since the establishment of the joint venture company QAFCO in 1969, the company has become the world’s largest single-site urea producer, representing a significant percentage of the world’s traded supply. Yara has owned a 25% share in QAFCO, with the remaining 75% share owned by Industries Qatar (IQ), which in turn is owned 51% by QP.
Commenting on this acquisition, Mr. Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum said, “We are delighted to have signed this agreement with Yara which will increase our effective share in QAFCO. This is another example of Qatar Petroleum’s successful implementation of its strategy of capacity and capability building and contributing to the robustness and development of the nation’s oil and gas industry. I would like to thank Yara for their partnership and sincere efforts in supporting QAFCO over the past half century.”
The parties have agreed on a purchase price of USD 1 billion for Yara’s shares in QAFCO. The transaction is conditional on obtaining necessary local regulatory approvals and customary closing conditions.
“We are very proud of our partnership with Qatar Petroleum and Industries Qatar over the past half century, where we have succeeded in delivering a top quartile venture in every respect,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.