Yara CEO Haslestad and CFO Storvik Comment on Acquisitions

Joergen Ole Haslestad, chief executive officer of Yara International ASA, and Hallgeir Storvik, chief financial officer, comment on potential acquisition targets.

The company said today it’s important to “map different opportunities” in areas including North America, Europe and Latin America, to be prepared for potential acquisitions.

Haslestad and Storvik spoke in separate interviews after presenting the company’s capital markets day in Oslo today.

CEO Haslestad

“We are talking to people. But that doesn’t mean it will materialize into something in the short term. There are several potentials that we are talking to, to see whether this could then work out in the way we would like to see it. So yes, we have several discussions going on, not negotiations but discussions.”

“We would very much like to have Latin America. There are major areas, there’s Europe, North America, Latin America. We will focus on the larger markets” in Latin America. “If something could come up in Mexico or Colombia we would also then have an interest in doing that. We do not necessarily need to do huge acquisitions, there could be small acquisition which could be bolt-on to the activities we have. There are not that many assets in Europe, but there are still some. If you look at our figures, they are fairly acceptable, so there isn’t any desperate need to do something, but we would like to.”

On possible interest in Potash Corp’s nitrogen assets:

“We would be if those would be available and sold at an acceptable price.”

CFO Storvik

“We as a company are present in one way or the other in all relevant regions in the world. We are evaluating all project ideas and all acquisition ideas that effect nitrogen fertilizer. Which means that we all the time have a list of many potential moves, which is an advantage because when you short list a few of them you can be pretty sure that those are potentially very interesting. So what we have done in the past, which has been a success, to pick the most interesting and profitable ones and that is the same working methodology that we have going forward. We have a long list of potential strategic moves that we are working on, big and smaller ones.

On Potash Corp’s nitrogen assets:

“It was on the list of targets that we evaluated. A major part” of Potash Corp. of Saskatchewan Inc. “nitrogen is at Trinidad, which means you have to ship the ammonia out of Trinidad and that ammonia handling area is an area where we are by far the world’s largest. From that basis, it was a concept where we probably have more synergies than any other player.”

To contact the reporters on this story: Meera Bhatia in Oslo at mbhatia2@bloomberg.net

To contact the editor responsible for this story: Amanda Jordan at ajordan11@bloomberg.net.

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