Tata Chemicals said it sold its urea business to Europe-based Yara for Rs 2670 crore.
Yara sells farmers’ products.
Tata Chemicals will continue to own the brands Paras, TKS and Daksha. This transaction
does not include specialty products and complex fertilisers, the company added.
”This process of divestment by Tata Chemicals Limited is in line with the strategic direction of the company to continue to strengthen the Fertiliser businesses by partnerships and/or transfer of ownership to world class companies.The Urea business will now have the benefit of International network of Yara and its global expertise,” the company said.
The Urea Business along with the assets, liabilities, contracts, deeds etc., shall be transferred and vested with Yara India pursuant to the Scheme becoming effective on a slump sale basis i.e., in exchange of a lump sum consideration to be paid by Yara India to the Company, on the terms and conditions as agreed between by the company and Yara
The investment of the Urea Business by Tata Chemicals will unlock value for the Company, strengthen its Balance Sheet and will help to pursue growth potentials and opportunities in line with its strategic directions, Tata said.
“This process of divestment by Tata Chemicals Limited is in line with the strategic direction of the company to continue to strengthen the Fertiliser businesses by partnerships and/or transfer of ownership to world class companies.”