Yara completes joint venture with Praxair

Yara International ASA and Praxair Inc. confirmed the establishment of a 50/50 joint venture, under the name Yara Praxair, on 30 November 2007, following the European Commissions clearance of the deal.

As part of the agreement, Yara sold a 50 percent stake in its industrial gases business to Praxair, the world’s third largest industrial gases company, resulting in a one-time net income for Yara of more than NOK 700 million.

The intention of the JV, based in Oslo, Norway was to jointly develop growth opportunities in the industrial gases sector in Scandinavia and comprised Yara’s existing industrial gases business located in the region.

The joint venture offered Praxair new opportunities to develop its business in Northern Europe. Yara’s Scandinavian industrial gases business generated sales of NOK 940 million in 2006 and had over 30,000 customers. The unit had excellent knowledge and expertise in food preservation, process applications, metal fabrication, specialty gases, medical gases and services.

Powerful partners
At the same time, Praxair, Inc. was the largest industrial gases company in North and South America, and one of the largest worldwide, with 2006 sales of USD 8.3 billion. The company produced, sold and distributed atmospheric and process gases, and high-performance surface coatings.

It was agreed that Yara’s CO2 business in Europe would supply the new joint venture with CO2 and argon in Scandinavia but would continue as a wholly owned Yara business unit.

CEO and President of Yara International, Thorleif Enger, commented: “We are very excited about this new joint venture. Both companies have high ambitions to develop Scandinavian industrial gases activities. We are now in a unique position to act together and seize new business opportunities in other regions and in areas with mutual growth interests and ambitions.”

Chairman and CEO of Praxair, Inc., Steve Angel, added: “One area of particular interest is combining our technology and experience in enhanced oil recovery projects for certain North Sea oilfields. Also, considering the broad global reach of both organizations, we fully expect there to be additional collaborative ventures in other parts of the world in the future.”