EUROPE: Norsk Hydro Exits Fertilizer Business

Global Finance, May 2004

Oslo-based Norsk Hydro spun off its fertilizer unit to concentrate on its energy and aluminum businesses.

Yara International, formed in the de-merger, is the world's largest supplier of nitrogen fertilizer. It sailed off with the Vikingship logo that Hydro has used on its fertilizer brands for nearly a century.

JPMorgan Chase announced the launch of the Yara International sponsored American depositary receipt program. Each ADR is equivalent to one common share that trades on the Oslo Stock Exchange. The ADRs trade in the US over-the-counter market.

Yara's initial public offering was the biggest in Norway since 2001. An offer of 20% of the company's shares was 20 times subscribed. The remaining 80% of the company's shares were issued to Hydro's shareholders.