New Delhi: On Wednesday Tata Chemicals declared sale of its urea business to Yara Fertilisers India Pvt Ltd for Rs 2,670 crore. Tata Chemicals conveyed in a statement that, today the Board of the corporation at its gathering "measured and conventional the suggestions of the Committee of Directors as well as the Audit Committee, for the relocate of the business of sale and distribution of urea and customised fertilisers, produced by the corporation at its plants situated in Babrala, Uttar Pradesh, by way of a slouch sale to Yara Fertilisers India Pvt Ltd.
The contract is subject to all necessary rigid and other endorsements and sanction by the High Court/ National Company Law Tribunal (NCLT). The statement has also further conveyed that, the urea business along with the assets, liabilities, contracts, deeds etc, shall be moved and vested with Yara India pursuant to the Scheme of Arrangement flattering effectual on a slump sale basis i.e, in swap of a lump sum deliberation to be paid by Yara India. It has also further conveyed that, the sale consideration is Rs 2,670 crore, "subject to convinced adjustments following closing, as decided flanked by the parties in terms of the definitive agreements and the Scheme.
Tata Chemicals has also further conveyed that, the divestment of the urea business by Tata Chemicals will release value for the corporation, strengthen its balance sheet and will help to chase expansion potentials and chance in line with its planned areas. The sale is part of the corporation plans to reinforce the fertiliser business by partnerships and/or move of ownership to world-class companies. It has also further conveyed that, the urea business will currently have the advantage of international network of Yara and its worldwide specialists.
Tata Chemicals will carry on owning the brands Paras, TKS and Daksha. The transaction does not comprise specialty products and complex fertilisers. R Mukundan, Managing Director, Tata Chemicals has also further conveyed that, this marks a decisive move on the part of the corporation to move ahead on its strategy to build customer business while preserving leadership in inorganic chemicals business and focusing the farm business through its subsidiary Rallis and Metahelix. The corporation is pleased to have established a strong partner to parent its urea business.