Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

INTERVIEW-Morocco's OCP eyes foreign fertiliser acquisitions

Published 10/18/2010, 06:24 AM
Updated 10/18/2010, 06:28 AM

* OCP eyes foreign acquisitions - CEO

* Expects turnover to roughly double this year

* Readying bond issues on local and international markets

MARRAKESH, Morocco, Oct 18 (Reuters) - Morocco's Office Cherifien des Phosphates (OCP), the world's biggest phosphates exporter, is eyeing possible acquisitions of fertiliser producers abroad, its chief executive told Reuters.

The company also expects turnover this year to exceed $3 billion, or about double the figure for last year, and is preparing to raise capital through bond issues on the local and international markets, said Chief Executive Mostafa Terrab.

He said the company was looking carefully at merger and acquisition moves in the international fertiliser industry that could affect companies with which OCP has relationships, and may step in with offers of its own.

"It could make sense to acquire fertiliser capacities ... outside Morocco," he said late on Sunday on the sidelines of the World Policy Conference in the Moroccan city of Marrakesh. "We are taking a very close look at it."

He said company turnover for this year would be up to "well over the $3 billion mark" after demand for fertiliser -- for which phosphates are primarily used -- recovered from a slump last year caused by the global financial crisis.

OCP has embarked on a 6.3 billion euro ($8.81 billion) investment programme to roughly double its production capacity by 2020.

The chief executive said the planned bond issues were designed to prepare debt markets for possible bigger issues later, but he said the timing would depend on market conditions.

Terrab also said OCP was "fairly close" to bringing foreign investors into fertiliser production at the firm's Jorf Lasfar export hub. He said that would either be in the form of joint ventures or investors' taking direct stakes in fertiliser plants.

He said an initial public offering involving a small part of OCP's equity was not excluded, but he said there were no active plans at the moment to do this. (Reporting by Christian Lowe; Editing by Michael Shields)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.