Yara acquires Pilbara ammonia and nitrate assets from Apache Corporation

Yara International has acquired 100% of the shares in Apache Fertilisers Pty Ltd, which holds Apache's 49% ownership position in Yara Pilbara Holdings Pty Ltd (YPHL), for USD 391 million.

YPHL owns 100% of the Yara Pilbara Fertilisers Pty Ltd (YPF). YPF in turn owns the Yara Pilbara ammonia plant, which has a production capacity of approximately 850,000 tonnes per annum. In 2014 the Yara Pilbara ammonia plant delivered an EBITDA of USD 218 million. The natural gas contract for the ammonia plant contains a price step-up effective mid-2016.

YPHL also owns 20.4% of Yara Pilbara Nitrates Pty Ltd (YPN). YPN is constructing a technical ammonium nitrate (TAN) plant with a production capacity of 330,000 tonnes per annum, with completion scheduled for early 2016.

"We are pleased to secure full ownership of the Pilbara ammonia plant, which is the largest and most modern ammonia plant in Yara's portfolio," said Svein Tore Holsether, President and CEO of Yara.

"The Pilbara assets are already operated by Yara, and therefore require limited efforts to fully integrate. The investment will also yield synergies within governance and tax structure," said Holsether.

The transaction has been signed and closed, and required approvals by relevant authorities have been obtained.