Air Products,Yara in talks to partner in ammonia project; shares fall

Air Products and Chemicals

08/12/2025 16:54

** Shares of industrial gas company Air Products APD.N fall 7.2% to $241.95

** APD in talks with Norwegian fertilizer producer Yara International  YAR.OL to combine its low-emission ammonia projects in the U.S. and Saudi Arabia with Yara's world-scale ammonia network

** Yara will acquire ammonia production, storage and shipping facilities for about 25% of total project cost, once ammonia plant at Louisiana Clean Energy Complex reaches performance levels

** Morningstar analyst Krzysztof Smalec says some investors would’ve preferred APD to completely exit the Louisiana project

** "This implies that Air Products would have to continue to invest in the required capital expenditures until the project is completed"

** Krzysztof adds that investors are concerned about the risk of further delays and cost overruns on the project

** Including session's moves, stock down 17.6% YTD

(Reporting by Pranav Mathur in Bengaluru)

((Pranav.Mathur@thomsonreuters.com;))