Doha: Qatar Petroleum announced that it has entered into a binding agreement to acquire Yara’s 25% stake in Qatar Fertiliser Company (“QAFCO”). The transaction will mark the conclusion of a successful, long standing partnership.
Since its establishment as a joint venture company in 1969, QAFCO has become the world’s largest single-site urea producer, representing a significant percentage of the world’s traded urea volumes. Prior to this transaction, QAFCO was owned by Industries Qatar with a 75% share and Yara of Norway with a 25% share.
Commenting on this acquisition, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum HE Saad Sherida Al-Kaabi said, “We are delighted to have signed this agreement with Yara which will increase our effective share in QAFCO. This is another example of Qatar Petroleum’s successful implementation of its strategy of capacity and capability building and contributing to the robustness and development of the nation’s oil and gas industry. I would like to thank Yara for their partnership and sincere efforts in supporting QAFCO over the past half century.”
The transaction, in which the parties agreed on a purchase price of USD 1 billion for Yara’s 25% share in QAFCO, is conditional upon and customary regulatory and closing conditions.
