Yara to Divest Fertilizer Business in Ivory Coast
Yara has decided to divest its fertilizer import and distribution subsidiary in Ivory Coast. The move follows a thorough analysis of the company’s operations, considering market dynamics, regulatory environment, and strategic growth opportunities.
The Norwegian fertilizer producer said it wants to ensure the allocation of resources and investments towards selected countries in the continent, which offer a higher potential for the successful implementation of its 2030 Africa Food Systems Transformation strategy.
"The decision to divest is driven by the acknowledgment that Yara’s ambition to become a true leader in the Food Systems Transformation in Africa, can only be reached in a phased approach. A necessary first step is to right-size our geographical footprint and prioritize those specific crops and regional segments offering the highest opportunity to establish closed-loop partnerships, which will secure a sustainable improvement in the Sub-Saharan smallholder farmer's productivity and profitability", said Luis Alfredo Pérez, Yara’s senior vice president Africa.
“In our pursuit of securing the necessary investments, it is imperative that we streamline our operations and exercise prudent capital allocation. A realistic and disciplined approach is necessary, with a strong focus on core markets that can yield scale and drive bottom-line growth. I am confident that this strategic decision will enable us to optimize returns, enhance shareholder value, and strategically position our company for sustained success in the years ahead,” added Wikus Grové, financial director Yara Africa.
The divestment transaction is expected to be finalized by the end of April 2024.
