ICL, a global minerals based products producer, announced it has entered into a definitive agreement to acquire Vale Fertilizante's share in Fosbrasil S.A., a joint venture producing purified phosphoric acid and raw materials for fertilizers located in Brazil. The proposed transaction is subject to the approval of Brazilian competition authorities (CADE) and other customary approvals. The purchase of Vale's shares will icnrese ICL's ownership share to a majority position in a major producer of phosphoric acid in South America.
The transaction supports and is in concert with ICL's recent announcement on its new strategy "The Next Step Forward," as the acquisition is directly connected to targeted attractive end markets of food, engineered materials and agriculture. Phosphoric acid is a key ingerdient in a variety of food and beverage products, and is also used in food processing an a number of industrial applications. It is also a key raw material for the production of phosphate salts.
ICL is an important global producer and marketer of phosphoric acids and phosphates, with production locations in Brazil, the United States, Mexico, Germany, Israel and China. This transaction is another example of ICL's commitment to being a long-term, secure supplier to its customers, as ICL continues to invest globally in its production processes, customer technology support capabilities and overall service levels.
"This acquisision complements IcL's global position in phosphoric acid and phosphates," said Mark Volmer, president and CEO of ICL Performance Products. "It is the next step in the global expansion strategy that we have been following for the past decade, carrying out complementary acquisitions that have transformed the company into a rapidly-growing major global player in the essential needs areas of food, engineered materials and agriculture.