05 September 2013 22:50 [Source: ICIS news]
HOUSTON (ICIS)--Phosphate producer OCP Group and Bunge Limited have reached an agreement to buy Bunge's 50% stake in their Moroccan fertilizer joint venture Bunge Maroc Phosphore S.A., the US-based agribusiness major announced on Thursday.
The joint venture was formed in 2008 to provide phosphate-based materials for Bunge's fertilizer businesses in South America.
According to company officials, the operation has a production capacity of 375,000 tonnes per year of phosphoric acid and other derivative products. The deal, which will need approval from Brazilian regulators, is expected to close by the end of 2013.
Morocco-based OCP is a global leading phosphate producer and, looking ahead towards its acquisition, the company said it is considering making additional capital investment to improve the facility's infrastructure and increasing production rates.
"Bunge Maroc Phosphore has played an important role in meeting our fertilizer supply needs in South America," said Soren Schroder, CEO of Bunge. "However, with the sale of our fertilizer business in Brazil, the opportunity for OCP to acquire our interest in the joint venture at this time makes strategic sense for both parties."
Headquartered in White Plains, New York, Bunge Limited operates in over 40 countries and is involved in many aspects of agricultural services and products, including buying and transporting oilseeds and grains, and producing sugar and ethanol from sugarcane.
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