Yara International ASA has completed its acquisition of Tata Chemicals' urea business in India, marking a significant step forward for its growth ambitions in India.

"I am pleased to announce the completion of the acquisition of Tata Chemicals' urea business, which is a major step forward for Yara as we broaden our footprint in the world's second-largest fertilizer market. The inclusion of these assets in our global business will enable us to accelerate our growth in India," said Svein Tore Holsether, President and Chief Executive Officer of Yara.

The acquired plant has an annual production of 0.7 million tonnes ammonia and 1.2 million tonnes urea, and generated revenues and profit before tax of respectively USD 296 million and USD 29 million in the financial year ended 31 March 20171. The plant was commissioned in 1994, and is the most energy-efficient urea plant in India, comparable with Yara's best plants.

The transaction is valued at USD 421 million on a debt and cash free basis and comprises a net operating capital value of USD 130 million and other assets valued at USD 291 million, with the operating capital value subject to post-closing adjustment.