Yara International ASA and BW Gas have today entered into a Heads of Agreement under which Yara divests most of its ammonia shipping assets to BW Gas.
Yara International ASA and BW Gas have today entered into a Heads of Agreement under which Yara divests most of its ammonia shipping assets to BW Gas. This comprises seven fully owned ammonia vessels and three charter-parties. The agreed price is USD 347 million, of which Yara receives USD 235 million after having spent USD 112 million on buying out two partly owned vessels.
Yara and BW Gas will also enter into a partnership agreement under which BW Gas will provide shipping services that Yara has defined to be non-core. Yara is today the world's largest player in the ammonia segment, trading more than 5 million tonnes per year or one third of the global seaborne trade. The partnership will increase Yara's ability to participate in future expansions of seaborne ammonia trade and logistics optimization at the same time as BW Gas' shipping scale is being improved.
"Our shipping activities have, and will continue to represent an important competitive advantage for Yara for many years. While commercial control remains a core activity for Yara, ownership of shipping capacity is not. With BW Gas we establish a strong partnership. Their strength as the leading shipping service supplier within the LPG/ammonia segment will increase our flexibility and support our growth ambitions," says President and CEO of Yara International, Thorleif Enger.
Commenting on the deal, Jan Håkon Pettersen, Managing Director and CEO of BW Gas, says: "The partnership with Yara, the world's leading ammonia producer, is strategically important for BW Gas to reach it's goal of becoming the preferred supplier of gas transportation. The relationship will improve the utilization of our fleet and create value for our shareholders. We will at the same time renew and expand our ammonia fleet and further strengthen our position as the world's leading shipping service provider to the gas industry."