Yara to acquire 100 pc of Galvani minority interests

OSLO, NORWAY: Yara SA has reached an agreement to acquire the minority interest in Galvani Industria, Comercio e Servicos SA from the Galvani family. As part of the deal certain assets will be transferred to the Galvani family, who will also receive a payment in cash and a contingent amount. Yara will thereby own 100 percent of the shares in Galvani Industria, Comercio e Servicos SA.

"This deal streamlines our production footprint in Brazil, securing full ownership of key Yara Brazil production assets, complementing its extensive distribution capabilities and achieving a more integrated position in the Brazilian market," said Lair Hanzen, Executive Vice President Yara Brazil.

Yara Brazil will own 100 percent of the industrial unit in Paulinia with integrated Single Super Phosphate production and a fertilizer bulk blend facility, and the Serra do Salitre project with an annual production capacity of approximately 1.2 million tonnes of phosphate ore and 1.5 million tonnes of finished fertilizer (SSP equivalents).

The agreement includes a cash payment of $70 million over a 3-year period from closing, and a conditional future payment related to project success. The production unit in Luis Eduardo Magalhaes and the mining units in Angico dos Dias and Irece (all three in the state of Bahia), as well as the Santa Quiteria greenfield phosphate project will be separated out from Galvani Industria, Comercio e Servicos SA and will be fully controlled by a new company managed by the Galvani family.

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