Israel’s Makhteshim Agan seeks control of Argentina’s Atanor

BUENOS AIRES (ICIS news)--Argentine agrochemicals and ethanol producer Atanor could be part of a larger acquisition by Israel-based crop protection major Makhteshim Agan, an Atanor official said on Tuesday.

Makhteshim Agan signed a letter of intent in June to acquire the operations of Dennis Albaugh, a maker of off-patent crop protection products operating in the Americas. Dennis Albaugh’s businesses include Argentina’s Atanor, the largest producer of herbicides in the country.

Makhteshim's “agrochemicals portfolio in Argentina complements very well with Atanor’s, and this is why the Israeli company is so interested in closing this operation,” said Jorge Dominguez, industrial director of the Atanor Group.

Makhteshim already participates in the Argentine agrochemicals market through its subsidiary, Magan Argentina, which was begun in 1996.

The Atanor agrochemicals business unit accounts for 50% of Dennis Albaugh's sales in Argentina, Dominguez said.

Atanor “also has a chemicals unit - for which it produces caustic soda, chlorine and acetates- and a food unit focused on sugar processing, which includes the ethanol business,” he added. 

According to the letter of intent, the acquisition of Dennis Albaugh would be completed for $340m (€262m) in cash, plus $455m in notes, $59m in common shares of Makhteshim and the assumption of up to $280m of Albaugh debt.

Makhteshim indicated it hoped to close the deal by the last quarter of 2010.

Aside from Argentina, “Dennis Albaugh has operations in the USA and Mexico,” said Dominguez.

In Argentina, Miguel Gonzalez would continue as the president and executive director of Atanor.

Atanor has a fungicide manufacturing plant in Brazil, three sugar cane mills in the North of Argentina and five chemical plants in Argentina where it produces caustic soda, chlorine and acetates.

($1 = €0.77)