Qatar Petroleum company announced that it has signed a binding agreement to acquire Yara’s 25% stake in Qatar Fertilizer Company (QAFCO), according to a statement released by the company.

The QAFCO, prior to this transaction, was owned by Industries Qatar with a 75% share and Yara of Norway with a 25% share.

According to the transaction agreement, the parties agreed on a purchase price of $1 billion for Yara’s 25% share in QAFCO. ​

Commenting on this acquisition, Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President and CEO of Qatar Petroleum said, “We are delighted to have signed this agreement with Yara which will increase our effective share in QAFCO. This is another example of Qatar Petroleum’s successful implementation of its strategy of capacity and capability building and contributing to the robustness and development of the nation’s oil and gas industry. I would like to thank Yara for their partnership and sincere efforts in supporting QAFCO over the past half century.”

Since its establishment as a joint venture company in 1969, QAFCO has become the world’s largest single-site urea producer, representing a significant percentage of the world’s traded urea volumes.