Yara International ASA has signed an agreement with the US-based industrial gases major Praxair Inc to sell its European CO2 business for Euro 218 million (about $ 246 million). The agreement also includes a sale of Yara's remaining 34 percent stake in the Yara Praxair Holding AS joint venture to Praxair for an estimated Euro 94 million.
In 2014, Yara’s European CO2 business sold approximately 850,000 metric tonnes of liquid CO2 and 50,000 metric tonnes of dry ice primarily to the food and beverage industries, and generated revenues of Euro 112 million. The business operates five CO2 liquefaction plants, three large CO2 shipping vessels, seven shipping terminals and six dry ice production facilities across the UK, Ireland, Scandinavia, Northern Europe and Italy.
"The CO2 business has been an attractive and long-standing part of Yara's portfolio, but remains a relatively small part of the broader industrial gas industry, and where Praxair is well positioned to create additional value,” said Svein Tore Holsether, president and chief executive officer of Yara International ASA.
The proposed transaction is conditional upon final transaction agreements, obtaining necessary approvals from competition authorities, and other customary closing conditions. The transaction is expected to close in the first quarter of 2016, with a provisionally estimated post-tax gain of Euro 150 million including the Yara Praxair Holding AS sale.
Steve Angel, chairman and chief executive officer of Praxair, said, “Yara’s European CO2 business has high-quality assets that will complement Praxair’s industrial gases business in Europe. Additionally, this business will be a positive addition to our portfolio by enhancing our presence in non-cyclical segments such as food and beverage.”
