ICL Fertilizers, a division of Israel Chemicals (ICL), today signed an agreement with Anglo American Plc to acquire full ownership of Cleveland Potash, the only potash manufacturer in Britain. The price will be $45 million, subject to price adjustments when the deal is closed. "Globes" published an exclusive report on the deal a year ago, at which time ICL denied negotiations were taking place.
ICL president and CEO Akiva Mozes today said in a statement that the acquisition of Cleveland Potash was an integral part of the company's business strategy for developing the group's core business, of which fertilizers was a part. Mozes added that the current agreement would enable the company to increase production capacity and fertilizer sales.
Dead Sea Works president and CEO Shuki Gold said that together with the purchase of potash facilities in Spain, the acquisition of Cleveland Potash complements the company's Dead Sea potash activities with underground potash production and strengthens the group's marketing position in Western Europe.
This acquisition, combined with the merger of the activities of Rotem Amfert Negev and Dead Sea Works, will lead to major savings in production costs, and also facilitate the sharing of information and professional ability in potash mining and production, with a sharper focus on development of fertilizers.
Following the acquisition of Cleveland Potash, ICL's potash production capacity will reach 5 million tons a year, putting the group in fifth place among the world's potash producers. Cleveland Potash produces one million tons of potash a year in its plant in Northern England and over 0.5 tons of salt for melting snow in its underground mining facilities.
Cleveland Potash employs 850 workers and has annual sales of 90 million pounds. The acquisition is subject to approval by the antitrust authorities in Britain and other countries, as well as other conditions stipulated by the two companies.
Published by Israel's Business Arena on November 29, 2001