Oslo (2013-06-05): The Brazilian Administrative Council for Economic Defence (CADE) has approved Yara's acquisition of Bunge's fertilizer business in Brazil, allowing Yara to proceed with completing the USD 750 million transaction and integration process.
"This regulatory approval marks the start of an exciting new phase in Brazil for Yara. Brazil has significant growth prospects for both the agricultural sector in general and the fertilizer industry, and Yara intends to play a key role in the further development of Brazilian agribusiness," said Jørgen Ole Haslestad, President and Chief Executive Officer in Yara International.
The transaction is valued at USD 750 million and comprises a net operating capital value of USD 385 million and other assets valued at USD 365 million, with the operating capital value subject to post-closing adjustment. Yara is targeting USD 50 million annual synergies from 2014.
CADE's unrestricted approval of the acquisition was announced on May 16, with a subsequent 15 day filing period for possible objections, which has now expired without any such objections announced by CADE. Closing of the acquisition is expected to take place during third quarter 2013, with the acquired business consolidated into Yara International ASA fourth-quarter 2013 results. The transaction will be financed from the existing cash balance of Yara International ASA.
For further information, please contact:
Thor Giæver, Investor Relations
Telephone: (+47) 24 15 72 95
Cellular: (+47) 48 07 53 56
Esben Tuman, Corporate Communications
Telephone: (+47) 24 15 70 26
Cellular: (+47) 905 08 400
Yara delivers solutions for sustainable agriculture and the environment. Our fertilizers and crop nutrition programs help produce the food required for the growing world population. Our industrial products and solutions reduce emissions, improve air quality and support safe and efficient operations. Founded in Norway in 1905, Yara has a worldwide presence with sales to 150 countries. Safety is always our top priority.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.