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

Oslo, 5 October 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.


Contacts:

Thor Giæver, Investor Relations
Cellular: (+47) 48 07 53 56
E-mail: thor.giaver@yara.com

Esben Tuman, Media Relations
Cellular: (+47) 90 50 84 00
E-mail: esben.tuman@yara.com


About Yara

In collaboration with customers and partners, Yara grows knowledge to responsibly feed the world and protect the planet, to fulfill its vision of a collaborative society, a world without hunger and a planet respected.

Our crop nutrition solutions and precision farming offerings allow farmers to increase yields and improve product quality while reducing environmental impact. Our environmental and industrial solutions improve air quality and reduce emissions, and are key ingredients in the production of a wide range of products. We foster an open culture of diversity and inclusion that promotes the safety and integrity of our employees, contractors, business partners, and society at large.

Founded in 1905 to solve emerging famine in Europe, Yara has a worldwide presence with more than 17,000 employees and operations in over 60 countries. In 2017, Yara reported revenues of USD 11.4 billion.
www.yara.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.