 "(From left to right) R Mukundan, Managing Director, Tata Chemicals and Terje Knutsen. Senior VP and Head of Crop Nutrition, in Mumbai (Pic: Suryakant Niwate)")
In a statement to the stock exchanges today, Tata Chemicals said it would continue to own the brands – Paras, TKS and Daksha and the deal does not include specialty products and complex fertilisers.
The company’s shares were trading 6 per cent up at Rs 492 a share.
Founded in 1905 in Europe, Yara has worldwide presence with 13,000 employees and in 150 countries.
Tata Chemicals said the divestment is in line with the strategic direction of the company to continue to strengthen the fertiliser businesses by partnerships and transfer of ownership to world class companies. The urea business will now have the benefit of international network of Yara and its global expertise.
R. Mukundan MD, Tata Chemicals said the sale marks a decisive move on the part of the company to move forward on its strategy to build consumer business while maintaining leadership in Inorganic chemicals Business and focusing the farm business through its subsidiary Rallis and Metahelix. The company is pleased to have found a strong partner to parent its Urea business.
Kotak Investment Banking and JM Financial Institutional Securities Ltd were transaction advisors to Tata Chemicals, while Deloitte Touche Tohmatsu India LLP acted as Financial & Tax Advisors. AZB & Partners was Legal Advisor for the deal.
