Israel Chemicals Ltd. (TASE: ICL) has bought out its partner in Belgian fertilizer components maker Nutrisi Holdings, Sociedad Química y Minera de Chile SA (Santiago: SQM). The two companies owned Nutrisi in equal shares. Israel Chemicals did not disclose the size of the deal.
Nutrisi and Norway's Yara International ASA (OMX: YAR) own in equal shares NU3, the world's largest manufacturer of soluble NPK (nitrogen (N), phosphorous (P), and potassium (K)) fertilizer components. NU3 owns two large manufacturing plants in Belgium and southern Holland, and sells its products throughout Europe and other global markets.
Israel Chemicals said that the acquisition is part of its strategy to become one of the world's major global specialty fertilizer producers. The global specialty fertilizer market is growing by 5-8% a year, double the growth rate of conventional fertilizer markets.
The deal follows earlier acquisitions this year by Israel Chemicals Everris (previously Scotts Global Pro) a multinational manufacturer and distributor of high-quality specialty fertilizers, including controlled-release, slow-release and soluble fertilizers; and Fuentes Fertilizantes, Spain's largest manufacturer and distributor of soluble and liquid fertilizers, NPK components and conventional fertilizers.Israel Chemicals is also expanding soluble fertilizer production by its Indian joint venture Zuari Rotem Specialty Fertilizers Ltd.
ICL Specialty Fertilizers CEO Yossi Zidon said, "This strategic transaction is just one of the steps that we have taken since the beginning of the year to establish ICL as one of the leading global players in the specialty fertilizers industry. Sales of specialty fertilizers have been growing rapidly throughout the world due to the widespread adoption of advanced agricultural techniques and the industry's growing environmental needs. As a result, we view specialty fertilizers as a strategic market that will help us accelerate our growth over the long term."
Israel Chemicals share price fell 1.2% in morning trading to NIS 43.71, giving a market cap of NIS 56 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on October 24, 2011
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