Oslo-Yara International ASA has signed a Heads of Agreement with Praxair Inc., the world’s third largest industrial gases company, with the intention of establishing a joint venture to further enhance development opportunities for Yara’s industrial gases business. The planned joint venture would be owned 50 percent by each partner and comprise Yara’s existing industrial gases business located in Norway, Denmark, and Sweden. The goal is to establish the new company during third quarter 2007. The jv would operate under the name Yara Praxair AS and would be based in Oslo. It would be headed by Per Kværum, with a board of directors consisting of representatives from both companies. The agreement would result in a one-time net income for Yara of more than NOK 700 million, which is expected to be booked in the third quarter. In 2006, Yara’s existing industrial gases business had sales of NOK 940 million. Yara’s CO2 business in Europe will continue as a wholly-owned business unit in Yara. Yara will continue to further develop its European CO2-activity, and will supply the new joint venture with CO2 and argon in Scandinavia.
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