São Paulo – The Moroccan state-owned fertilizer manufacturing company OCP and Brazil’s Fertilizantes Heringer, based in the state of Espírito Santo, have announced this week that the former is acquiring a 9.5% to 10.5% stake in the latter. The deal’s value may vary from R$ 145.4 million to R$ 226.6 million, considering a price of R$ 27.00 per share.
According to a statement issued by Heringer, the cash injection will allow the company to “proceed with its growth process” and enable the “implementation of new fertilizer mixing units.” Following the stake acquisition, OCP will be able to elect a member of the Brazilian company’s board of managers.
The deal also provides for the signing of a long-term agreement for OCP to supply phosphate-based inputs. Morocco is one of the world’s leading phosphate exporting countries, and OCP is the company in charge of exploring and selling the material, which is employed in fertilizer manufacturing.
The deal is still pending approval from the Heringer board and shareholders, and by Brazil’s Administrative Council for Economic Defence (Cade). Common shares in Heringer were up 13.61% this Friday (13th) at the São Paulo Stock Exchange (Bovespa).
*Translated by Gabriel Pomerancblum
