Tata Chemicals has received an approval from the Competition Commission of India (CCI) for the proposed acquisition of its urea and customized fertilisers business by Norway’s Yara Fertilisers. Under the deal, Tata Chemicals will sell its urea plant in Babrala, Uttar Pradesh, which has an annual capacity of about 1.2 million tonnes for an estimated Rs 2,670 crore.
The company will transfer the business of sale and distribution of urea and customized fertilizers, manufactured in Babrala, UP, by way of a slump sale to Yara Fertilisers. The urea business, along with the assets, liabilities and contracts, among others, will be transferred to Yara India.
Tata Chemicals is the second-largest producer of soda ash in the world with manufacturing facilities in India, UK, Kenya and USA. It is India’s leading crop nutrients player and a leading player in crop protection business through its subsidiary Rallis India.