Yara International ASA, has officially signed the transaction documents for the sale of its carbon dioxide (CO2) business to Tier One player, Praxair.

The deal, which was first announced on 15th September 2015, will see the US-based industrial gas company buy the remaining 34% stake in the Yara Praxair Holding AS joint venture for €300m ($338m).

Under the agreement, the Norwegian company will continue to supply Praxair with raw CO2 and will continue to operate three of the CO2 liquefaction units which are integrated within Yara’s existing fertiliser plants.

Praxair is committed to growth and this proposed acquisition aligns with our core business strategy of building density in targeted geographies where we can achieve synergies

In 2014, Yara’s European CO2 business sold approximately 850,000 metric tonnes of liquid CO2 and 50,000 metric tonnes of dry ice, primarily to the food and beverage industries. In the same year, it generated revenues of approximately €112m ($126m).

The business currently operates five CO2 liquefaction plants, three large CO2 shipping vessels, seven shipping terminals and six dry ice production facilities across the UK, Ireland, Scandinavia, Northern Europe and Italy.

Steve Angel, Chairman and CEO of Praxair, explained, “Praxair is committed to growth and this proposed acquisition aligns with our core business strategy of building density in targeted geographies where we can achieve synergies. Additionally, this business will be a positive addition to our portfolio by enhancing our presence in non-cyclical segments such as food and beverage.”

Planned completion date for the deal is set for 1st June, 2016, subject to relevant merger control procedures.