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Yara secures 100% of Galvani minority interests including Salitre phosphate projectqrcode

Oct. 10, 2018

Favorites Print Oct. 10, 2018
Yara has reached an agreement to acquire the minority interest in Galvani Indústria, Comércio e Serviços S.A. from the Galvani family. As part of the deal certain assets will be transferred to the Galvani family, who will also receive a payment in cash and a contingent amount. Yara will thereby own 100% of the shares in Galvani Indústria, Comércio e Serviços S.A.
 
"This deal streamlines our production footprint in Brazil, securing full ownership of key Yara Brazil production assets, complementing its extensive distribution capabilities and achieving a more integrated position in the Brazilian market," says Lair Hanzen, Executive Vice President Yara Brazil.
 
Yara Brazil will own 100% of the industrial unit in Paulínia with integrated Single Super Phosphate production and a fertilizer bulk blend facility, and the Serra do Salitre project with an annual production capacity of approximately 1.2 million tonnes of phosphate ore and 1.5 million tonnes of finished fertilizer (SSP equivalents).
 
The agreement includes a cash payment of USD 70 million over a 3-year period from closing, and a conditional future payment related to project success. The production unit in Luis Eduardo Magalhães and the mining units in Angico dos Dias and Irecê (all three in the state of Bahia), as well as the Santa Quitéria greenfield phosphate project will be separated out from Galvani Indústria, Comércio e Serviços S.A and will be fully controlled by a new company managed by the Galvani family. The carved-out assets transferred to the Galvani family have a book value equivalent to USD 95 million as of 31 August 2018.
 
This transaction is subject to conditions precedent that still need to be met, as well as the approval of the Brazilian antitrust authorities (CADE) and other common approvals.

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