Orascom Construction Industries of Egypt Buys Rotterdam Ammonia Terminal
Orascom Construction Industries, the biggest publicly traded builder in the Middle East, acquired MICRO Chemie BV, which owns and operates ammonia storage tanks in Rotterdam, as it expands its fertilizer distribution network.
MICRO Chemie has a 25-year lease renewable for another 25 years on a Rotterdam port terminal, which opened in 2002, Cairo- based Orascom said in a Regulatory News Service statement today. The value of the transaction wasn’t disclosed.
“The acquisition is a very small one,” said Omar Taha, a Cairo-based analyst at Beltone Financial. “However, the company continues to expand its global presence, formulating an integrated global fertilizer producer, with a vast distribution network.”
The terminal has a permit to receive up to 600,000 tons of ammonia and deliver up to 550,000 tons and has waterway access that can accommodate large tankers and smaller barges. It can deliver to France, Germany and the Netherlands on the River Rhine and is also accessible by rail, Orascom said.
Royal DSM NV agreed in March to sell two unprofitable agrochemical businesses to Orascom Construction Industries for 310 million euros ($418 million), allowing Orascom to acquire more fertilizer companies in Egypt.
Shares of Orascom Construction rose less than 0.1 percent to 232 Egyptian pounds at 11:55 a.m. in Cairo today, valuing the company at 48.1 billion pounds ($8.44 billion).
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