Qatar Petroleum 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 long and successful partnership with the Norwegian company.
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. QAFCO was owned by Industries Qatar with a 75% share and Yara of Norway with a 25% share.
Minister of State for Energy Affairs and President/CEO of Qatar Petroleum HE Saad Sherida Al Kaabi, said they are delighted to have signed the agreement with Yara, which will increase their effective share in QAFCO. He said that this is another example of Qatar Petroleum’s successful implementation of its strategy of capacity and capability building and contribution 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 US$1 billion for Yara’s 25% share in QAFCO, is conditional upon customary regulatory and closing conditions.