Sector News

Norway’s Yara eyes potential IPO of its industrial nitrogen business

June 28, 2019
Energy & Chemical Value Chain

https://www.borderless.net/norways-yara-eyes-potential-ipo-of-its-industrial-nitrogen-business/Yara is evaluating an initial public offering (IPO) of its industrial nitrogen businesses in a move that would “create the first integrated industrial nitrogen” company, the Norwegian fertilizers major said on Wednesday.

Ahead of its capital markets day (CMD) in London, the Oslo-headquartered crop nutrient manufacturer revealed the conclusion of a final IPO scope is expected in early 2020.

“Such a company would take an industry-leading position, with the highest value proposition in core markets, a solid European platform and an attractive market portfolio balancing stability and growth,” Yara said.

“As part of the evaluation process, the business units mining applications (TAN), transport reagents and industrial nitrates will, effective 1 July 2019, be organised in a separate entity.”

Yves Bonte, previously executive vice president of new business, will take up the role as CEO of the entity, and no longer be a member of the Yara corporate management team.

“Yara is well underway to becoming a focused crop nutrition company, and the evaluation of an IPO is an important step in that direction,” added the firm’s CEO Svein Tore Holsether.

“A new ownership structure would allow these businesses to continue to thrive and grow profitably, while continuing to provide healthy returns to Yara.”

Yara also said it had achieved a 70% increase in targeted earnings improvements as a result of the Yara Improvement Program, adding it was expanding the program from 2020 to 2023.

“Key levers to achieve these targets will be higher production volumes and energy efficiency, a leaner cost base with clear fixed cost targets and improved working capital management,” Yara said.

“The improvement program is on track to meet its original end 2020 target, representing an important milestone towards realising the expanded targets by end 2023.”

Source: ICIS News

comments closed

Related News

March 24, 2024

Thomas Gangl leaves Borealis

Energy & Chemical Value Chain

Appointed Borealis CEO in 2021, Thomas has led key initiatives including the sale of the nitrogen business, acquisitions of Rialti Spa and Integra Plastics AD, and Borouge’s IPO. He also made the final investment decision for the Borouge 4 plant, set to be the world’s largest polyolefin complex.

March 24, 2024

Chemours names Dignam permanent CEO

Energy & Chemical Value Chain

The Chemours Co. today named interim CEO Denise Dignam as the company’s permanent CEO and president, as well as a member of the board of directors, effective immediately. Dignam has been interim CEO since late February, when former CEO Mark Newman was placed on leave due to an internal investigation.

March 24, 2024

Neste merges three business lines into new Renewable Products unit

Energy & Chemical Value Chain

Neste Corp. (Espoo, Finland) has completed its organizational change process, announced on 1 November 2023. Neste informed that it will merge its three renewable business units into one Renewable Products business unit as well as restructure its functions to better support business-driven ways of working.

How can we help you?

We're easy to reach