Yara has entered into final negotiations regarding the sale of Yara Formates AS to ADDCON, a privately owned German company.
Yara Formates produces and sells formates created from formic acid to a number of different applications,including grass and fish preservation, feed additives, de-icing of airports and oilfield chemicals.
ADDCON is a company focusing exclusively on the formates business and will have business advantages from expanding their business in this area.
As the production of these products is not linked to Yara's main production infrastructure centred on nitrogen products and as the customers are also different from Yara's other business, the synergies with Yara's core activities have been limited.
The parties' intention is to finalise the negotiations within one month, with a take-over of the company at the latest by the end of the year. The book value of Yara Formates is slightly above NOK 200 million, $30,656,039.