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The Competition Commission of India (CCI) has approved the acquisition of the Zuarinagar plant of Zuari Agro Chemicals Ltd (ZACL) by Paradeep Phosphates Limited (PPL).
As a result of the acquisition, PPL would acquire the business of developing and manufacturing urea and non-urea fertiliser products presently being carried out by ZACL at the Zuarinagar, Goa plant, an official release said.
It maybe recalled that the Board of Zuari Agro Chemicals, the agriculture vertical of the Adventz Group, had in February approved the sale of its fertiliser plant in Goa and the associated businesses to the group’s joint venture Paradeep Phosphates Ltd (PPL) for a total consideration of $280 million (about ₹2027.46 crore).
Zuari Agro Chemicals had then, in a regulatory filing, said the proceeds from the transaction will be used to take care of the long-term liabilities of the company. For 2019-20, the networth of the Goa unit was a negative ₹650.15 crore.
This Goa unit is engaged in the manufacture, distribution, imports and sale of urea, DAP and various grades of NPK fertilisers. PPL is a joint venture between Zuari Agro and Morocco-based OCP Group.
The sale of the Goa plant by Zuari Agro Chemicals is aimed at consolidating the group’s bulk fertiliser business. With this restructuring, the company now has a clearly earmarked venture into speciality nutrients and retail through its wholly-owned subsidiary Zuari Farmhub Ltd and the bulk business of the Goa plant and Paradeep Phosphates operations consolidated under PPL.
Prior to the acquisition, PPL was engaged mainly in the manufacture and sale of non-urea fertilisers, namely, diammonium phosphate and NPK fertilisers. It also imports and sells Muriate of Potash, the release added.
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