Yara has reached agreement with the Brenntag Group to sell certain chemical supply activities at its Köping and Tertre sites, as part of the commitments agreed with the European Union for approval of its acquisition of Kemira GrowHow Oyj.
On 19 September 2007 Yara submitted a package of commitments to the European Commission for the conditional approval of its acquisition of Kemira GrowHow Oyj. One of the commitments concerned the divestment by Yara of its AN solution, aqueous ammonia and weak nitric acid supply activities conducted from the Köping production site in Sweden and the AN solution, aqueous ammonia, weak nitric acid and concentrated nitric acid supply activities conducted from the Kemira GrowHow production site at Tertre, Belgium. In each case, related production and distribution assets form part of the sales package.
Yara has reached agreement with the Brenntag Group to sell the Köping supply activities to Brenntag Nordic AB and the Tertre supply activities to Brenntag NV. The European Commission has approved Brenntag as a Purchaser and the form of the agreements. As a result, a major step has been taken towards the fulfillment of the Commitments to the European Union related to the approval of Yara’s acquisition of Kemira GrowHow Oyj. Closing is conditional on regulatory approvals and is expected to occur during the second quarter of 2008. The sale will result in a gain of EUR 11 million which will be booked in Yara’s second quarter results.
Yara is pleased that the customers of these businesses will be served by a dedicated and professional operator, and looks forward to supplying Brenntag under the new agreement.