Sector News

Qatar Petroleum acquires Yara’s 25% stake in Qatar Fertiliser Co for $1 billion

March 10, 2020
Chemical Value Chain

Qatar Petroleum (QP) said on Sunday it had signed an agreement with Yara international to acquire its 25 percent stake in Qatar Fertiliser Company (QAFCO) for $1 billion, according to statements by both companies.

The transaction will mark a conclusion of a partnership that started with establishing QAFCO, a joint venture, in which Yara owned a 25% share with the remaining 75% owned by Industries Qatar (IQ), which in turn is owned 51% by QP.

QAFCO since then has become the world’s largest single-site urea producer, representing a significant percentage of the world’s traded urea volume, according to a QP statement.

The deal is still pending necessary local regulatory approvals and customary closing conditions.

Yara, one of the world’s leading fertilizer companies, said it 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, after the closing of the transaction.

By Maher Chmaytelli

Source: Reuters

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