Strong Mexican presence achieved with purchase of Olmeca

In October 2006 Yara strengthened its south American presence by acquiring the Mexican fertilizer company Olmeca from SQM.

Olmeca had sales of 160,000 tonnes of fertilizers in 2005 and was considered the ideal vehicle to drive Yara's market position in Mexico, an important and growing market. Total revenues for Olmeca – which was previously owned by Sociedad Quimica y Minera de Chile S.A. (SQM) – exceeded USD 50 million in 2005
 
At the time of the purchase, Olmeca had a well-established commercial organization with strong market presence and a network of rented warehouses and sales outlets. The company had a four percent share of the domestic fertilizer market and a nine percent market share in the central region of Mexico. Olmeca had also established a leading position in the specialty fertilizer segments for both fertigation and dry applied products.

Commenting at the time of the announcement, Thorleif Enger, President and CEO of Yara International, stated: "Mexico is the fourth largest fertilizer market in the Americas after the USA, Brazil and Canada. The acquisition of Olmeca contributes to strengthening Yara's position in the Mexican fertilizer market and creates a strong foundation for increased sales to the cash crop segment."

The Olmeca acquisition continued the close relationship between Yara and SQM.  In 2005 Yara increased its indirect ownership in the Chilean specialty fertilizer company to 24.9 percent following several years of sales and marketing partnerships between the two.