Safco Planning to Acquire Sabic Shares in Saudi Fertilizer Firm

Saudi Arabia: Safco, a Saudi Arabia based fertilizer company, is planning to acquire the shares of SABIC (Saudi Arabia Basic Industries Corporation), a Saudi diversified manufacturing company, active in chemicals and intermediates, industrial polymers, fertilizers, and metals, in Ibn Al-Bayttar, a Jubail based fertilizer company. This business strategy would allow Safco to take full ownership of the 50:50 joint venture. The Sabic is reviewing its investments and has gone for the move taking in consideration its assets, financial results and operations. Ibn Al-Bayttar is a Jubail based equally owned venture between Sabic and Safco. The company produces high value ammonia, urea, phosphate, compound and liquid fertilizers.

TechSci Research depicts that this agreement would enable both the companies, i.e. Sabic and Safco, to strengthen their market hold and simultaneously foster new growth in the Saudi Arabia’s fertiliser industry. As Safco, one of the leading players in regions fertiliser industry, would acquire the Ibn Al-Bayttar’s fertiliser business completely, all the business decisions and plans would be defined more clearly and appropriately thereby improving the industry growth as a whole.

According to TechSci Research report, “Iran Fertilizers Market Forecast & Opportunities, 2020”, the fertilizer market in Iran is projected to grow at a CAGR of over 3.5% during 2015 - 2020 due to increasing need for improving the yield of available arable land in the country. Moreover, easing of sanctions imposed on Iran by the US and European Union is expected to increasing the country’s trade of fertilizers and agricultural products in the coming years.