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

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