Israel Chemicals Ltd. has signed a definitive agreement to acquire the share of Brazil’s Vale Fertilizante in Fosbrasil SA. The financial details of the deal were not disclosed.
Fosbrasil is a joint venture producing purified phosphoric acid and raw materials for the Brazilian fertilizer market. The proposed deal is subject to Brazilian regulatory approvals. ICL said that the purchase of Vale’s shares will increase its stake to a majority share in a leading phosphoric acid producer in South America. Each company held a 44.25 percent stake in the jv.
ICL is a leading producer of phosphoric acid and phosphates with production facilities in Brazil, the U.S., Mexico, Germany, China and Israel. “This acquisition complements ICL’s global position in phosphoric acid and phosphates and is the next stop in the global expansion strategy we have been following for the past decade,” said Mark Volmer, president and CEO of ICL Performance Products.
This is the second acquisition announced by ICL in the past week. Last week the company said it was acquiring Germany’s Hagesud Group, a producer of premium spice blends and food ingredients for meat processing. The terms of the deal were not released but Israeli financial industry sources put the value of the transaction at several tens of millions of dollars. Following the acquisition Hagesud will become part of ICL Good Specialties. The move is part of ICL’s plans to diversify into new niche markets.