Tata Chemicals buys 25-% stake in Gabon fertiliser unit
12 Apr 2011
Tata Chemicals has invested $290 million to acquire a 25.1-per cent stake in a greenfield, port-based, ammonia-urea fertiliser manufacturing complex in the African republic of Gabon.
Tata Chemicals will be a strategic investor in the stream 1 of the fertiliser project while Olam International will hold a majority 62.9 per cent and the Republic of Gabon the remaining 12 per cent equity in the company.
Olam and the Republic of Gabon had originally planned to set up a 1.3 million tonnes per annum urea plant with equity stakes on a 80:20 basis. The joint venture had an option to bring in a strategic partner later.
Tata Chemicals came in later after a successful culmination of the accord entered into between Olam and the Republic of Gabon to sell their respective stakes.
The fertiliser project will use natural gas as feedstock, which the Gabon government has assured to supply at competitive fixed price for 25 years.
The ammonia / urea venture in Gabon, when completed, will have two streams, each of 1.3mtpa of urea, with matching ammonia capacity. Combined, the project is envisaged to have a capacity of 2.6 million tonnes per annum.