Yara has signed a Share Purchase Agreement with Qatar Petroleum (QP) to sell its 25% share in Qatar Fertiliser Company (QAFCO) for USD 1 billion.
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.
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.
Following closing of the transaction, Yara will evaluate potential extraordinary dividends and/or share buy-backs, in line with its policy of maintaining a mid to long-term net debt/EBITDA range of 1.5-2.0.
Yara