CCI clears Tata-Yara Fertilizer Deal
India’s Competition Commission has approved plans by the Indian subsidiary of Norway-based Yara Fertilisers to acquire the urea and customized fertilizers business of Tata Chemicals. The entire urea business, along with the assets – which include a 1.2m t/y urea plant in Babrala, Uttar Pradesh – liabilities and contracts, is changing hands for Rs.2,670 crore ($400 million).
The deal was initially agreed in August of this year. “The board has approved transfer of the business of sale and distribution of urea and customized fertilizers, manufactured by the company at its plants located in Babrala, Uttar Pradesh, by way of a slump sale to Yara Fertilisers India,” Tata Chemicals said in a statement.
In announcing the plans last summer, R Mukundan, managing director of Tata Chemicals, said, the sale is in line with the Indian multi-industry conglomerate’s strategy of concentrating on its consumer business, which means building on its leadership in inorganic chemicals as well as emphasize the farm business of its Metahelix and Rallis units.
Tata will continue to own brands such as Paras, TKS and Daksha, and the transaction likewise does not include complex fertilizers and specialty products. India is the world’s second largest fertilizer market.
