CADE to reexamine Fosbrasil acquisition

A Superintendência Geral do Conselho Administrativo de Defesa Econômica (Cade) decidiu remeter para análise do tribunal do órgão a aquisição de 44,25% da Fosbrasil (participação anteriormente detida pela Vale) pela ICL Brasil. Com a operação, a ICL passará a deter 88,50% da Fosbrasil, consolidando seu controle no capital da empresa. A decisão da superintendência está presente em despacho publicado no Diário Oficial da União desta sexta-feira, 24.

Quando não gera preocupações concorrenciais, operações de natureza semelhante são aprovadas diretamente pela Superintendência. No caso ICL/Fosbrasil, entretanto, foi considerada a necessidade de o tribunal do Cade se pronunciar sobre o negócio.

A Fosbrasil é a principal fornecedora nacional de Ácido Fosfórico de Grau Alimentício(PPA), usado para a produção de sais de fosfato, matéria-prima utilizada em diversas indústrias, tais como alimentícia e de produtos de higiene e limpeza. A ICL, por sua vez, é a principal empresa atuante no mercado de sais de fosfato no Brasil, que utiliza o produto fabricado pela Fosbrasil como matéria-prima em sua atividade.

Diante da relação de fornecimento entre as duas empresas, a Superintendência considerou que esse ato de concentração, tal como estruturado, poderia incentivar a Fosbrasil a discriminar ou mesmo recusar o fornecimento do PPA a outras fabricantes de sais de fosfato, com o objetivo de favorecer a ICL.

A Superintendência informa que, após estudos e consultas ao mercado, verificou que a opção de importar o PPA ou a maioria dos sais de fosfato seria pouco viável para as empresas concorrentes, e isso facilitaria eventual estratégia de discriminação por parte da Fosbrasil. Foi identificado que a única concorrente da empresa no Brasil não tem capacidade produtiva e técnica para competir adequadamente nesse segmento. "A eventual redução da competitividade no mercado de sais de fosfato poderia resultar em restrições de oferta e aumentos nos preços do produto no Brasil, com potencial de prejudicar a cadeia produtiva que utiliza os sais como insumo, incluindo a indústria de alimentos", considerou a superintendência.

O tribunal do Cade, portanto, será responsável pela decisão final sobre a aprovação, reprovação ou adoção de eventuais medidas que afastem problemas concorrenciais. As determinações do tribunal podem ser aplicadas de forma unilateral ou mediante acordo com as partes. O ato de concentração foi notificado em 30 de abril deste ano. O prazo legal para a decisão final do Cade é de 240 dias, prorrogáveis por mais 90 dias.

What will happen in Brazilian Fertilizers soon?

Brazil is an enormously important player on the supply side of the fertilizer market with a number of exciting nitrogen, potash, phosphates and AP projects, it is also a very important importer of fertilizers and the largest producer of a range of agricultural products in Latin America.
Big multinationals like Mosaic, Potash, Yara, OCP, ICL, are making movements in order to consolidate with another local players like Vale, Anglo American, Galvani and Heringer. 
Transgas is talking about a US$ 2 billion site from coal to gas to NH3 and Urea, in the coal basin of South Santa Catarina. And Petrobrás is investing firmily in Nitrogen in Três Lagoas (Mato Grosso do Sul) and planning Linhares (in Espírito Santo).
Roullier, Mbac, B&A, are too in the "raw materials" side.
Besides, AMA congregates "blenders" all over the vast interior, where circa 30 million tons are shipped over the clock to prairies ("cerrado"), to the South ("planaltos", "serras" and "pampas"), up to the dry Northeast, and the Amazon, not to forget the central states of São Paulo, Minas and Rio.

Mosaic cuts phosphate fertilizers production

The Mosaic Co. is reducing production of phosphate fertilizer, citing high sulfur and ammonia prices.
The Plymouth-based crop nutrient producer said it doesn't expect to cut employees, though the move will lower operating rates at its mines and concentrates plants.

CF and Yara in merger talks

Norway's Yara International and CF Industries CF in Your Value Your Change Short position said they are discussing a merger that would create a ne w, nearly $19 billion-a-year powerhouse in the global fertilizer business and extend the industry's recent run of consolidation.

A deal would create the world's biggest producer of nitrogen fertilizers, combining Yara's global distribution system with CF's proximity to low-cost natural gas—a key component in nitrogen fertilizer—as sliding crop prices and rising competition from China increase pressure on fertilizer makers.

A tie-up also could face regulatory scrutiny, analysts said, as the two companies have sizable combined market share in some countries.

The companies, in statements confirming the talks, said they are at an early stage and may not result in a deal. Yara spokesman Esben Tuman said the discussions are driven by a belief that the companies have complementary geographic focuses.

A CF Industries spokesman didn't respond to requests for comment.

Share prices of both companies rose Tuesday after the firms disclosed the talks. Yara, which had revenue of $13.4 billion last year, and CF Industries, whose 2013 revenue totaled $5.47 billion, have a combined market valuation of about $26.4 billion. That would rank a merged company just below the $28.8 billion market cap of Canadian fertilizer giant Potash Corp. of Saskatchewan, the world's largest producer of potash, another type of fertilizer that is made from minerals.

Fertilizer companies have done a string of deals in recent years, to reduce costs and gain traction overseas. Yara recently acquired fertilizer producer OFD Holding Inc., strengthening its Latin American operations after last year spending $750 million to buy the Brazilian fertilizer operations of grain-trading firm Bunge Ltd.                     

 

Yara buys 60% of Galvani

Galvani was a Family owned Brazilian fertilizer company with two principal sites (in Paulínia - São Paulo and Luís Eduardo Magalhães - Bahia).
The purchase will cost around US 320 million (assets, plus debt) and additional provisional investments (oppening of one mine in Salitre and another in Santa Quitéria).
By this way Yara reinforce its commitment to be a raw material phosphate producer in Brazil, combing Galvani with the recently bought former Bunge retailing NPK operations (that gives Yara a 25% NPK Market share in Brazil).

Maaden Phosphate new JV gets its money to go ahead

Source: Seeking Alpha
Saudi phosphate project gets $5B financing deal

Jul 1 2014, 08:20 ET

• Saudi Arabia's Ma'aden says it signed a $5B financing deal with commercial banks and a state-owned investment fund to back its $7.5B phosphate production project in the country.
• The project is a joint venture between Ma'aden, Saudi Basic Industries Corp. and Mosaic (MOS), and is part of Saudi state efforts to create a stronger industrial base beyond oil refining and export.
• The project will have a production capacity of 16M metric tons/year of phosphate concentrate, sulphuric acid, phosphoric acid, as well as plants to produce calcium monophosphate and calcium diphosphate; phosphate production expected to start in late 2016.

Argus FMB Strategy Report: World Processed Phosphates Outlook to 2028

 

This strategy report examines the major changes currently underway in the industry, and their impact on the future shape of the sector.
In particular the report addresses:

• The significant role of China in the phosphates market, with forecasts of its continued capacity build-up, and the likely development of its exports
• The major influence of OCP on processed phosphates and in particular the future of its Jorf Lasfar Phosphate hub
• The decline of production in North America and Europe, and inevitable closures
• Changes in the patterns and mix of phosphate products, particularly amongst ammonium phosphates
• Demand growth for processed phosphates, international trade and pricing
• The increasing role of micronutrients in phosphate products as a path to balanced fertilization and product differentiation

The report provides annual price forecasts to 2028 for the key international processed phosphate benchmarks: DAP, MAP, TSP, SSP, and phosphoric acid.
The report presents essential insights, analysis and guidance for producers and consumers of processed fertilizer phosphates, as well as academics and investors in the fertilizer industry.
Purchase the study or request more information

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Argus FMB Strategy Report: World Phosphate Rock Outlook to 2028

The World Phosphate Rock Outlook to 2028 is a ground-breaking document. It tackles the important issues of the day:

• The peak phosphates debate - how credible is it?
• Declining grades - will new phosphate rock currently under assessment be suitable for merchant deliveries or acid plants
• What is the impact of impurities on the suitability of rock for the main end-uses
• Where will investment be seen and at what overall project cost
• What is the future of rock trade and how will the quality of rock traded alter
• What will be the impact of entry costs and the poorer grade/quality of ore being mined

The phosphate industry is undergoing major changes. The World Phosphate Rock Outlook to 2028 analyses the changes which are already occurring in the availability of various grades and qualities of rock. The companion study “Argus FMB Strategy Report: World Processed Phosphates Outlook to 2028” analyses the impact of changing rock supply on the type and production which can be produced using poorer grade/quality rock.