By Staff writer
Company says it has acquired a minority stake in the largest urea fertiliser manufacturer in sub-Saharan Africa
Dubai-based Abraaj Group has announced that it has acquired a minority stake in Indorama Fertilisers, the largest urea fertiliser manufacturer in sub-Saharan Africa.
The stake was purchased from Indorama Holdings Netherlands, a wholly owned subsidiary of Indorama Corporation, one of the world’s fastest growing petrochemical companies with operations in Asia, Africa, Europe and North America, Abraaj said in a statement.
Indorama Fertilisers operates a 1.4 million metric tonnes per annum urea manufacturing facility based in Port Harcourt, Nigeria which plays a key role in supporting the agricultural sector in country.
Abraaj said the fertiliser industry is expected to experience long-term demand growth as increases in populations and incomes drive demand for food. Urea is the most widely used fertiliser globally and continues to grow in market share due to its high nutrient content and ease of handling and storage.
Abraaj, which has been investing in Africa for the past two decades, said it will use its expertise and networks to support Indorama Fertilisers' market penetration and future expansion plans.
Arif Naqvi, founder and Group chief executive, The Abraaj Group, said: “This is a landmark transaction for Abraaj in sub-Saharan Africa. We are privileged to be partnering with Indorama Corporation to create a global fertiliser leader in Africa.
"Having successfully invested in the fertiliser business in North Africa, we look forward to leveraging that know-how and working with the management team in developing the company’s route-to-market infrastructure, build its network and support its capacity expansion and product diversification plans in the region.”
The Abraaj Group said it has deployed about $3 billion in Africa in a range of sectors including healthcare, financial services, logistics, consumer goods, and food and beverage.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.