Israel Chemicals takes majority stake in Brazil's Fosbrasil

Fosbrasil produces purified phosphoric acid and raw materials for fertilizers.

Israel Chemicals Ltd. (TASE: ICL)Tel Aviv, Israel, December 23, 2013 ICL (TASE:ICL), is buying Vale Fertilizantess stake in Fosbrasil S.A., a joint venture producing purified phosphoric acid and raw materials for fertilizers located in Brazil. Financial details of the transaction have not been disclosed. Israel Chemicals said that the deal was subject to the approval of Brazilian competition authorities (CADE) and other customary approvals. It said that the purchase of Vales shares would increase its stake to a majority position in a major producer of phosphoric acid in South America.

According to Israel Chemicals, the transaction is in line with its recent announcement on its new strategy The Next Step Forward, as it is directly connected to targeted end markets of food, engineered materials and agriculture. Phosphoric acid is a key ingredient in a variety of food and beverage products, and is also used in food processing and a number of industrial applications. It is also a key raw material for the production of phosphate salts.

This acquisition complements ICLs global position in phosphoric acid and phosphates, said ICL Performance Products president and CEO Mark Volmer, It is the next step in the global expansion strategy that we have been following for the past decade, carrying out complementary acquisitions that have transformed our company into a rapidly-growing major global player in the essential needs areas of food, engineered materials, and agriculture.

Last week, Israel Chemicals announced the acquisition of Hagesud Group, a German producer of spice blends and food ingredients for meat processing.

Published by Globes [online], Israel business news - www.globes-online.com - on December 23, 2013

Copyright of Globes Publisher Itonut (1983) Ltd. 2013

 
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