Yara sells Libyan business to NOC
Norway’s Yara has agreed to sell its entire stake in the Libyan Norwegian Fertiliser Co. (LIFECO) to the Libyan Investment Authority (LIA) and the National Oil Corp. (NOC).
The deal has an effective date of December 31, 2020. The transaction includes all of Yara’s stake in the company, in addition to economic rights, obligations and liabilities.
Yara had owned 50% in LIFECO, while NOC and LIA had 25% each. The Norwegian company did not disclose the value of the deal but said that it attributed no value to its stake. As such, Yara expects to book a “minor pre-tax gain” in its fourth quarter results. NOC said that, following the agreement, it would hold a 75% stake in LIFECO while the LIA would continue to have 25%.
The Libyan oil company said that the deal saw all of the urea and ammonia facilities owned by the Libyan state. NOC praised Yara for completing the deal in a co-operative fashion, which preserved the good relationship between the companies. The deal allows the Libyan companies to restart factories and carry out essential maintenance, while also paying salaries to employees.
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