Morocco's OCP to buy 10 pct stake in Fertilizantes Heringer
RABAT, June 12
RABAT, June 12 (Reuters) - Morocco's state-run phosphate monopoly OCP has signed an agreement to buy a 10 percent stake in Brazil-based company Fertilizantes Heringer S.A for $145 million, a statement from the Moroccan company said.
"OCP would acquire between 9.5 percent and 10.5 percent of Heringer's shares for approximately $145 million by way of a capital increase," the statement said. "The proceeds from the investment will be used to increase Heringer's blending capacity in its key markets," it added.
The deal's closing is subject to regulatory approvals in Morocco and Brazil.
Heringer and OCP, which controls a third of the international market for phosphate, have also signed a long-term supply agreement of phosphate based products.
Last month, OCP raised $1.55 billion in its debut international bond to improve its infrastructure and boost its output.
In 2013, OCP also bought Bunge Ltd's 50 percent stake in their Moroccan fertilizer joint venture Bunge Maroc Phosphore S.A (BMP).
(Reporting by Aziz El Yaakoubi; Editing by Bernard Orr)