By Kjetil Malkenes Hovland

OSLO--Norwegian chemical company Yara International ASA (YAR.OS) said Monday it appointed Svein Tore Holsether as its chief executive following the departure in October of Jorgen Ole Haslestad.

Mr. Holsether, 42, has been the chief executive of aluminum products company Sapa, a 50-50 joint venture between Yara and Norsk Hydro ASA, since 2011. Sapa said it regretted his decision to leave.

Yara decided in October that Mr. Haslestad, who had been Yara's chief executive since 2008, wasn't the right person to lead the company amid merger talks with CF Industries, based in Deerfield, Ill. The merger would have created a fertilizer company with around $18 billion in annual sales, but was shelved later the same month as the companies couldn't agree terms.

Mr. Holsether will take the helm at Yara in October. Acting Chief Executive Torgeir Kvidal will resume his previous position as chief financial officer.

"Svein Tore Holsether is a perfect fit for Yara, and the board of directors is very satisfied that he has decided to join," said Yara Chairman Leif Teksum. "His extensive background from international industry coupled with his personal capabilities makes him highly qualified."

Yara "performs very well and holds a unique position throughout its global footprint," said Mr. Holsether.

With a market capitalization of 114 billion kroner ($14.2 billion), Yara is Norway's fourth-biggest listed company. It has been investing heavily in new projects, including $490 million in an ammonia plant in Freeport, Texas, together with Germany's BASF SE.

Mr. Holsether will be expected to continue Yara's anti-corruption work, after the part state-owned company in January last year accepted Norway's biggest-ever corporate fine of 295 million kroner, after it admitted to paying bribes in Libya, India and Russia several years ago.

Write to Kjetil Malkenes Hovland at kjetilmalkenes.hovland@wsj.com

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