OCP buys Bunge out of phosphate jv in Morocco
5:43 AM MDT | September 6, 2013 |Francinia Protti-Alvarez
Office Cherifien Des Phosphates (OCP; Casablanca) and Bunge (White Plains, NY) say they have reached an agreement for OCP to acquire Bunge’s 50% ownership interest in the companies’ phosphate and phosphate fertilizer joint venture in Morocco. The jv, Bunge Maroc Phosphore (BMP; Jorf Lasfar), was formed in 2008 to produce fertilizers in Morocco and serve as an additional source of phosphate-based raw materials and intermediate products for Bunge’s fertilizer businesses in South America. The transaction is expected to close by the end of 2013, subject to customary closing conditions, including regulatory approval in Brazil. Financial details of the deal were not disclosed.
“BMP has played an important role in meeting our fertilizer supply needs in South America. 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,” says Soren Schroder, CEO of Bunge.Yara acquired Bunge’s fertilizer business in Brazil for $750 million earlier this year, as reported by CW.
OCP extracts, markets, and sells phosphates and derivatives. It produced 28 million m.t. of phosphates in 2011, together with 4.4 million m.t. of phosphoric acid and 4.3. million m.t. of phosphate-based fertilizers. The company exports more than 90% of its production. “BMP has been a key component of OCP’s strategy and commitment in Latin America. This acquisition further reinforces that commitment. 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,” says Mohamed Ibnabdeljalil, executive v.p. and chief commercial officer at OCP.
OCP generated revenues of 59.3 billion Moroccan dirham ($6.9 billion) in 2012.
