Norwegian industrial giant Yara has announced a NOK 2.6 billion (USD 425 million) takeover of a Colombian-based fertilizer producer, taking Yara’s total investment in the growing Latin American fertilizer industry to NOK 6.1 billion (USD 1.125 billion) in the space of a year.
Yara will buy out OFD Holding from Ominex Resources, including production facilities in Colombia and a distrbution network throughout several Latin and Central America countries, reports newspaper Dagens Næringsliv (DN). It follows Yara’s NOK 4.2 billion (USD 740 million) acquisition of Brazilian fertilizer company, Bunge, last December.
“The agreement is a new step in our global growth strategy, in that we increase our own production capacity by half a million tons,” says CEO Jørgen Ole Haslestad.
Yara’s stocks dropped by more than 2 per cent on Tuesday following the announcement.