Saudi Arabia’s fertiliser producer Sabic Agri-Nutrients signed an agreement to buy a 49 per cent stake in ETG Inputs Holdco Limited (EIHL) as it aims to expand its operations globally and boost growth.
The deal is valued at $320 million, the company said in a statement on Thursday.
“This move will help us expand our footprint taking advantage of growth opportunities to keep up with expected developments and to position the company as a leading player in the global agri-nutrients industry,” said Abdulrahman Shamsaddin, chief executive of Sabic Agri-Nutrients.
The company has strong capabilities in manufacturing, operation, planning, marketing, sales, supply chain, technology and research, and aftermarket services, he said.
EIHL specialises in blending and distributing fertilisers, seeds and crop protection items. It has a network of 350 distribution centres across Africa that cater to the needs of farmers in the continent.
“We are extremely proud to welcome Sabic AN as our partner and look forward to creating a sustainable impact across our markets," said Ashish Lakhotia, chief executive of EIHL.
"We are dedicated to addressing food shortages and providing quality products to increase farmers’ yields and optimise their earnings."
Food security has come into sharp focus in the wake of the coronavirus pandemic. Globally, companies are boosting their investments in sectors related to agriculture and food.
A subsidiary of Sabic, the Middle East’s largest petrochemicals company, Sabic Agri-Nutrients started operations in 2020 with an aim to become a global leader in the agri-nutrients industry and support the kingdom’s Vision 2030 programme to diversify the economy away from oil.
Listed on the Tadawul stock exchange, the company is involved in the production of urea, ammonia, phosphate and other specialised products.