Bunge to sell entire stake in Moroccan fertilizer JV to OCP Group
06 Sep 2013
US agriculture and food conglomerate Bunge Ltd yesterday agreed to sell its stake in Moroccan fertilizer company Bunge Maroc Phosphore S.A. to its joint venture partner OCP Group, for an undisclosed sum.
Bunge, which holds a 50-per cent stake in Bunge Maroc Phosphore, had formed the JV in 2008 to produce fertilizers in Morocco and serve as an additional source of phosphate-based raw materials and intermediate products for its fertiliser businesses in South America.
Morocco OCP Group is one of the global leaders in the phosphate industry and sells its derivative products in the international market since 1920.
''Bunge Maroc Phosphore has played an important role in meeting our fertilizer supply needs in South America,'' said Soren Schroder, CEO of New York-based 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.''
In December 2012, Bunge sold its Brazilian fertilizer operations to Norwegian chemical and fertiliser company Yara International for $750 million. (See: Norway's Yara to buy Bunge's Brazilian fertilizer business for $750 mn)
''Bunge Maroc Phosphore has been a key component of OCP's strategy and commitment in Latin America. This acquisition further reinforces that commitment,'' said Mhamed Ibnabdeljalil, EVP and COO of OCP.
Furthermore, we will now be able to fully integrate BMP in OCP's production system which will provide for greater industrial optimization of the Jorf industrial platform,'' he added.
The transaction is expected to close by the end 2013, subject to customary closing conditions.
