February 16, 2010 / 9:20 AM / in 9 years

Timeline: Fertilizer maker Yara's ambitious expansion

(Reuters) - Norway’s Yara on Monday agreed to buy U.S. fertilizer rival Terra Industries for $4.1 billion, the latest in its ambitious expansion aimed at capturing a 10 percent global market share.

Yara has doubled production capacity since 2004, when it was spun off of Norwegian industrial group Norsk Hydro.

Following are details of Yara’s previous big expansion deals:

2006

Burrup - Yara gains 35 percent in Australian fertilizer group Burrup Holdings. Burrup began production from its liquid ammonia plant on the Burrup Peninsula, western Australia, in 2006.

Fertibras - Yara acquires a controlling 48.09 percent stake in Brazilian fertilizer distribution and marketing company Fertibras, establishing Yara as the second-largest player in the fast growing Brazilian market.

2007

Kemira GrowHow - Yara completes the acquisition of Finnish phosphate fertilizer group Kemira GrowHow, one of the leading producers of fertilizers and feed phosphates in Europe. Kemira GrowHow’s position, particularly in the Baltics and Eastern Europe, was considered a valuable extension of Yara’s geographical reach.

Rossosh - Yara enters into a partnership with Russian fertilizer producer OAO Minudobreniya (Rossosh), including a minority stock acquisition, technology transfer and the integration of Rossosh into Yara’s planning and marketing operations. Yara holds a 30 percent stake in the company and gains access to low cost NPK (nitrogen, phosphorous and potassium — the three essential elements from plant growth).

2008

Saskferco Products/Belle Plaine - Yara acquires Canadian nitrogen producer Saskferco to strengthen its position in North America and relaunches the company as Yara Belle Plaine. The nitrogen manufacturing plant becomes part of Yara’s upstream production system, serving markets in western Canada and the upper Midwest of the United States.

2008/2009

Qafco - Yara gains a 25 percent in Qafco’s fifth and sixth production lines, adding to the 25 percent it already holds in the other lines. Industries Qatar holds the remaining 75 percent. Yara markets half of the urea production at Qafco — set to become the largest single production site of urea and ammonia in the world from 2011. Qafco produces ammonia and urea utilizing Qatar’s abundant gas resources.

2009

Libyan Norwegian fertilizer (Lifeco) - Yara signs joint venture with Libya’s national oil and investment companies to create Lifeco. Yara holds 50 percent in the fertilizer venture while the National Oil Corporation of Libya (NOC) and the Libyan Investment Authority (LIA) each hold a 25 percent stake. Yara handles all urea and ammonia exports from Lifeco. The project benefits from low-cost Libyan natural gas.

Compiled by Aasa Christine Stoltz and Wojciech Moskwa; editing by Karen Foster

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