Norwegian fertilizer group Yara International has signed a non-binding agreement to sell its European CO₂ to industrial gases business to Praxair for €218 million.

The deal set to close in the first quarter of 2016 will also see the Norwegian company transfer its remaining 34% stake in the Yara Praxair Holding joint venture to its industrial gases partner for around €94 million.

“The CO₂ business has been an attractive and long-standing part of Yara's portfolio, but remains a relatively small part of the broader industrial gas industry, and where Praxair is well positioned to create additional value,” said Svein Tore Holsether, CEO of Yara International.

Praxair CEO Steve Angel said the acquired business will complement his company’s industrial gases activities in Europe and will also enhance the US group’s presence in non-cyclical segments such as food and beverage.

In 2014, Yara’s European CO₂ business with revenues of €112 million sold around 850,000 t/y of liquid CO₂ and 50,000 t of dry ice, primarily to the food and beverage industries.

The company operates five CO₂ liquefaction plants, three large CO₂ shipping vessels, seven shipping terminals and six dry ice production facilities across the UK, Ireland, Scandinavia, Northern Europe and Italy.