About Yara

2007: Yara announces Kemira GrowHow takeover

In October 2007, Yara completed its acquisition of Kemira GrowHow Oyj, one of the leading producers of fertilizers and feed phosphates in Europe, following overwhelming acceptance of its tender offer by Kemira GrowHow shareholders.

The transaction had been subject to clearance by the European Commission, but received approval in September following Yara’s commitment to dispose of some specific operations in the new company, corresponding to less than three percent of the revenues of Kemira GrowHow.

Yara’s purchase of Kemira GrowHow was part of its continuing endeavor to strengthen its competitiveness in the global fertilizer market. Kemira GrowHow’s position, particularly in the Baltic and Eastern Europe, were seen as a valuable extension of Yara’s geographical reach.

Additionally, Kemira GrowHow’s phosphate operations were recognized as complementing Yara’s nitrogen activities, serving as a solid platform in the global fertilizer industry.

Based on 2006 reported financials, the acquisition of Kemira GrowHow Oyj increased Yara’s revenues and assets by approximately 21 percent and 20 percent, respectively.

Perfect match

Both companies were quick to acknowledge how the combination of the two businesses would create a strong, world-class company able to compete effectively in the global fertilizer market. Phosphate rock mining, phosphoric acid and finished products at Siilinjärvi and Uusikaupunki in Finland were important additions to Yara’s phosphate-related capabilities and represented new capacity within Yara.

Yara was also interested in opening the Sokli mine in Finnish Lapland and to explore the commercial utilization of the extracted phosphate, if a commercially sustainable means of implementation could be found.

Kemira GrowHow’s phosphate mining and primary upgrading operations in Finland were recognized as providing new competencies to the combined company, complementary to Yara’s existing operations. Yara saw that these operations would continue in the role of key competence centers in these fields.

Following approval of the deal, CEO and President of Yara International, Thorleif Enger, commented: “I am very excited about the opportunities this transaction will create and pleased that two Nordic companies with a strong history can combine their strengths to meet global competition. Kemira GrowHow’s phosphate mining, processing and commercialization compliments Yara’s existing business extremely well.”

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