Yara International ASA (Oslo, Norway; www.yara.com) has acquired 100% of the shares in Apache Fertilisers Pty. Ltd., which holds Apache’s 49% ownership position in Yara Pilbara Holdings Pty. Ltd. (YPHL), for $391 million.
YPHL owns 100% of the Yara Pilbara Fertilisers Pty. Ltd. (YPF). YPF in turn owns the Yara Pilbara ammonia plant, which has a production capacity of approximately 850,000 metric tons per year (m.t./yr). In 2014 the Yara Pilbara ammonia plant delivered an EBITDA of $218 million. The natural-gas contract for the ammonia plant contains a price step-up effective mid-2016.
YPHL also owns 20.4% of Yara Pilbara Nitrates Pty. Ltd. (YPN). YPN is constructing a technical ammonium nitrate (TAN) plant with a production capacity of 330,000 m.t./yr, with completion scheduled for early 2016.
“We are pleased to secure full ownership of the Pilbara ammonia plant, which is the largest and most modern ammonia plant in Yara’s portfolio,” said Svein Tore Holsether, President and CEO of Yara.
“The Pilbara assets are already operated by Yara, and therefore require limited efforts to fully integrate. The investment will also yield synergies within governance and tax structure,” said Holsether.
The transaction has been signed and closed, and required approvals by relevant authorities have been obtained.