Tata Chemicals said it will sell its urea business to Yara Fertiliser for Rs 2670 crore as part of value unlocking by the company.
In a statement to the stock exchanges today, Tata Chemicals said it
would continue to own the brands – Paras, TKS and Daksha and the deal
does not include specialty products and complex fertilisers.
The company’s shares were trading 6 per cent up at Rs 492 a share.
Founded in 1905 in Europe, Yara has worldwide presence with 13,000 employees and in 150 countries.
Tata Chemicals said the divestment is in line with the strategic
direction of the company to continue to strengthen the fertiliser businesses by partnerships and transfer of ownership to world class
companies. The urea business will now have the benefit of international
network of Yara and its global expertise.
R. Mukundan MD, Tata Chemicals said the sale marks a decisive move on
the part of the company to move forward on its strategy to build
consumer business while maintaining leadership in Inorganic chemicals
Business and focusing the farm business through its subsidiary Rallis and Metahelix. The company is pleased to have found a strong partner to parent its Urea business.
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