ICL signs 835,000-ton potash agreement in India

Israel Chemicals
Israel Chemicals

ICL's bid for Canadian company Allana Potash has been accepted.

Shortly after signing an agreement ending its dispute with its employees in Israel that paralyzed the company for several months, fertilizer manufacturer ICL (Israel Chemicals) (TASE: ICL: NYSE: ICL) last week announced that it had signed ICL did not publish the sale price in the contract, but said that it was over $10 a ton, in contrast to previous contracts, and was "very similar to the price set in recent deals with other manufacturers supplying potash to the Indian market."

ICL, controlled by Idan Ofer's Israel Corporation (TASE: ILCO), added that the new contracts signed "reflect the close ties developed by Israel Chemicals with its customers in India, who elected to wait for the end of the strike at the company." ICL Fertilizers president and CEO Nissim Adar added, "The new contracts in India consolidate the company's leading status in this strategic market. The Indian market has potential for rapid growth, and is expected to lead the demand for potash in the coming years, among other things in view of the rise in the quality of life in India, the change in its nutritional habits, and the need to supply sufficient food to a growing population, which will continue growing in the future."

ICL, which produces potash, chemicals, phosphates, and fertilizers mainly for the food, agricultural, and chemical compounds markets, has suffered in recent months from the strike by its workers in southern Israel (at its subsidiaries Dead Sea Works and Bromine Compounds, at Neot Hovav). The company's first quarter sales were down 13% to $1.4 billion, a trend attributed mainly to the strike at its plants in southern Israel, combined with the euro's weakness against the dollar. ICL's quarterly gross profit plummeted 21% to $446 million, but its sale of companies during the quarter generated over $200 million in revenue, sending its net profit soaring 65% to $217 million. ICL managed to reach understandings with its workers and the Histadrut (General Federation of Labor in Israel) towards the end of May.

Last week, ICL, managed by CEO Stefan Borgas, announced that the shareholders of its competitor, Allana Potash, listed on the Toronto Stock Exchange, had approved Israel Chemicals' $137 million bid, and that closing of the deal was expected this week, subject to court approval in Canada.

Adam Teva v'Din (Israel Union for Environmental Defense) last week petitioned the Haifa Water Affairs Court to order the Israel Water Authority to inspect the rate of water pumping by Dead Sea Works in its production processes.

Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Israel Chemicals
Israel Chemicals
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