Fertilizer giant Yara acquires a plant in northern India from Tata Chemicals for around 3.4 billion.
It informs the Norwegian company in a stock exchange release on Wednesday. The purchase price is 400 million dollars, and the acquisition includes a urea plant with associated distribution city Babrala in the state of Uttar Pradesh, north of the country.
– This acquisition represents another important step in our growth strategy and gives us a fully integrated position in the world’s second largest fertilizer market.
India has a strong population growth, rising living standards and a significant potential for improving agricultural productivity, says Svein Tore Holsether.
The plant has an annual capacity of 0.7 million tonnes of ammonia and 1.2 million tons of urea. It became operational in 1994 and is the most energy efficient in India, according to Yara.
High safety standard
– We are impressed by the high standards of operation in Babrala. The staff at the facility have build a high safety standard and a solid safety record. This well-run plant and its skilled workers will be an excellent supplement to Yara’s global production system, says the CEO.
The acquisition is subject to approval from the Indian government and the country’s legal system, which is expected to take between nine and twelve months.
Source: NTB scanpix / Norway Today