DOW JONES NEWSWIRES

Norwegian chemical company Yara International ASA (YAR.OS) said Wednesday it has agreed with Praxair Inc. (PX) to reduce its ownership in the Yara Praxair AS industrial gases joint venture in Scandinavia to 34% from 50%, while Praxair will increase its ownership to 66% from 50%.

The expected gain from the transaction in fourth quarter is approximately 300 million Norwegian kroner ($51 million) before tax. In addition, Yara will get a fair value revaluation gain on the remaining 34% ownership of approximately NOK650 million.

The Yara Praxair joint venture was formed in late 2007 and comprises Yara's industrial gas businesses located in Norway, Denmark and Sweden.

The business generated annual sales of approximately $173 million in 2010.

At 0721 GMT, shares in Yara were up 2.6% at NOK208.40.

-By Jens Hansegard, Dow Jones Newswires; +46-8-5451-3095; jens.hansegard@dowjones.com