By Dominic Chopping
Norwegian fertilizer producer Yara International ASA said Sunday that it has agreed to sell its 25% stake in joint-venture company Qatar Fertiliser Company to Qatar Petroleum for $1 billion.
Yara said that since the establishment of the Qatar Fertiliser Company joint venture in 1969, the company has become the world's largest single-site urea producer, representing a significant percentage of the world's traded supply.
Yara owned a 25% share in Qatar Fertiliser Company, with the remaining 75% share owned by Industries Qatar, which in turn is owned 51% by Qatar Petroleum.
The transaction is conditional on obtaining necessary local regulatory approvals and customary closing conditions.
Following closing of the transaction, Yara will evaluate potential extraordinary dividends and/or share buy-backs, in line with its policy of maintaining a mid to long-term net debt/Ebitda ratio in the range of 1.5-2.0.
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