In addition, the fertilizer maker will inject a $9.7 million loan into the rock phosphate mining company
In addition, the fertilizer maker will inject a $9.7 million loan into the rock phosphate mining company
Fertilizer maker Coromandel International is being acquired for $19.6 million (approx.
Alongside the acquisition, BMCC will receive a further US$9.7 million (about £75 million) loan through wholly-owned subsidiary Parry Chemicals, Coromandel said on Friday.
The move aims to strengthen backward integration and ensure long-term security of supply of rock phosphate, a key raw material in the production of phosphoric acid, which in turn is used to make complex fertilizers, the company said. At full capacity, BMCC can supply up to a third of the company’s rock phosphate needs. The Senegalese company started active production in 2021 and has since stabilized its operations, it said.
The transaction is expected to close in Q2 2022-23, subject to Senegal Government approval and the satisfactory fulfillment of the terms of the agreements.
As part of the Murugappa Group, Coromandel is the largest private producer of phosphate fertilizers in India. It operates three units to produce about 3 million tons of phosphate fertilizer. The company said it has strategic partnerships with leading integrated players such as Tifert (Tunisia) and Foskor (South Africa) to meet phosphoric acid needs. It has also increased proprietary phosphoric acid production at the Visakhapatnam plant and sourced rock from various countries.
As part of a strategy to strengthen the value chain, Coromandel says it is exploring phosphate mining opportunities to meet its rock phosphate needs.
Investing in BMCC will be a step toward achieving long-term sustainability and security of supply goals to meet India’s fertilizer needs, said Executive Vice Chairman Arun Alagappan.
