K+S Group has agreed to acquire a 75% stake in the fertilizer business of Commodities Holdings (Pty) Ltd. (ICH), a South African trading company, the Kassel-based company announced on Jan. 26.
The new business will operate under the name Fertiva (Pty) Ltd. The balance 25% of the shares in Fertiva will be held by two former ICH shareholders who previously managed the fertilizer business at ICH, and who now will also form part of the Fertiva management team, K+S said in a Jan. 26 media statement.
K+S did not comment on the transaction price.
ICH already has been distributing K+S fertilizers in the southern part of Africa for more than 40 years, as well as products from other manufacturers. Sales volumes of ICH’s fertilizer business in the last financial year (as of June 30, 2022) totaled approximately 543,000 mt of fertilizer, according to K+S.
“With this acquisition, we are further promoting the expansion of our core business and at the same time strengthening our activities in South and East Africa,” said the head of K+S’ Agriculture customer segment, Josef Wiebel.
K+S said in the future, Fertiva will constitute a distribution network with the already existing K+S Group companies in Kenya and Uganda, strengthening the German group’s market presence in Africa’s Sub-Saharan region.
The two parties signed the agreement on Jan. 25. The closing of the transaction remains subject to the fulfilment of a number of conditions, including obtaining regulatory approvals. The closing is targeted during the second quarter of this year.