MLA Report

October 2008

Yara Acquisition of Saskferco Great News for Saskatchewan and Thunder Creek

It was a huge win for the people of Saskatchewan and for Thunder Creek when Yara International announced the purchase of Saskferco for $1.6 billion last July. It was also a good time to take some profits for the people of Saskatchewan that can be used in other priority areas.

The sale of Saskferco to Yara has been officially closed having received approval from Investment Canada.

On July 14, 2008 Mosaic Company and Investment Saskatchewan announced an agreement to sell Saskferco, the nitrogen fertilizer plant at Belle Plaine, to Yara International ASA. Yara is one of the world’s largest nitrogen producers. The Saskferco purchase was the first major foray into North America for the Norwegian company.

The government has made an excellent return on its investment with its participation in Saskferco and has very successfully fulfilled the original policy objective of helping the company grow. The market is strong; the company is strong; it was an ideal time to sell.

The Saskatchewan government’s share of the sale of Saskferco is $783 million. The proceeds from the sale will be the subject of future announcements.

This sale represents an excellent value for Saskferco. We are pleased to welcome Yara to the Saskatchewan business community. The company’s investment in Saskferco and Mosaic’s plans to expand its operation in our province are very positive events that will further enhance our thriving economy.

Yara International is headquartered in Oslo, Norway, has operations in 40 countries and distributes its products worldwide. Yara has an excellent environmental and community record in those places where it does business. It employs approximately 8,000 employees.

I had the opportunity to visit with Yara International officials in Oslo during a week long investment attraction mission to northern Europe during the last week of August. It was a pleasure to meet the President and CEO of Yara, Thorleif Enger and others, to officially welcome Yara to Saskatchewan. We discussed the success of the transaction and the future of Yara in our province.

If you have a question about this MLA Report or any other matter, just Contact Lyle.

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