Norway Fertilizer Company Yara International has purchased 60 percent stake in the Brazilian phosphate miner Galvani Indústria for 390 million US dollars.
Under the agreement signed by the two companies, Yara has agreed to inject $165 million in Galvani and spend around $550 until 2019 on developing the firm’s mines.
“The Galvani acquisition will help secure phosphate fertilizer capacity in the centre of the country and in the attractive and fast growing agri-frontiers of Brazil”, said the Norwegian company, noting that the deal is part of its expansion strategy in Latin America.
Last year, Yara had completed its $750 million acquisition of Bunge’s fertilizer business in Brazil, which gave it 22 blending facilities and some production capacity across the country.
The Galvani business, which owns mining, production, blending and warehousing facilities, had posted last year $352 million in revenues.
The firm has two greenfield and one brownfield mining project under development with capacity of more than 2 million tonnes of phosphate rock per year.
Yara International is present in more than 50 countries and sales its products to more than 150 countries. Its largest business area is the production of nitrogen fertilizer. The company also produces dry ice, nitrates, ammonia, urea and other nitrogen-based chemicals.