Morocco’s government has given its approval for OCP SA’s fertilizer joint venture with Abu Dhabi-based Al Dahra Agriculture LLC in Romania.
OCP and Al Dahra will each hold a 50 percent stake in the new firm’s $5 million capital, plans for which were revealed in January 2020 (GM Jan. 24, p. 20).
The new company, named South East European Fertilizer Co. (SEEFCO), aims to extend the Moroccan fertilizer group’s activities in Romania, but also will use the country as a hub to expand into Central Europe and Eastern Europe, including Hungary, Serbia, Bulgaria, and Ukraine, for the distribution and sale of fertilizers.
Romania’s Competition Council gave the green light in July last year for setting up the joint venture company (GM July 24, p. 20).
However, it is not clear if Bulgaria’s Commission for Protection of Competition (CPC) has given its okay. OCP and Al Dahra were reported in late July to be seeking CPC approval to set up the jv.
The establishment of the jv could affect the Bulgarian market for the distribution of fertilizers, according to a SeeNews report, citing Bulgaria’s CPC.
OCP currently sells phosphate rock and fertilizers directly from Morocco to wholesalers in Bulgaria. Al Dahra is not active on the Bulgarian market.