SAUDI ARABIA- Sabic Agri-nutrients has recently completed its acquisition of a 49% stake in ETG Inputs Holdco Limited (EIHL).
The two companies signed a purchase agreement early last year, agreeing on a debt-free deal valued at US$320 million, and have now finalized the transaction.
Sabic Agri-Nutrients Company (Sabic AN) is a public joint-stock company owned 50.1% by Sabic and is the first petrochemical company in Saudi Arabia established as a joint venture between the Government and the citizens of Saudi Arabia.
Its acquisition of ETG Inputs Holdco Limited is part of Sabic Agri-nutrients’ strategy to integrate the value chain and include the blending and distribution of agri-nutrients in the global markets.
Sabic AN also stands to benefit from EIHL’s presence across Sub-Saharan Africa in its distribution and blending of fertilizers, seeds, and crop protection items, helping Sabic AN move closer to farmers and end-customers.
EIHL has 17 blending facilities across Africa, operating under three brands, namely Kynoch, Zambian Fertilizer, and Falcon, and employing over 1000 employees in different levels of its business.
Speaking at a ceremony in Dubai on April 10 to mark the milestone, Abdulrahman Shamsaddin, Sabic AN CEO, commented that the partnership will further strengthen their position in the regional market by capitalizing on the EIHL’s strong presence in the region throughout the agri-nutrients value chain.
This advantage aligns with Sabic AN’s vision to move closer to the end users and promptly respond to the dynamic needs of customers globally.
“This move will help us keep abreast with key developments in the industry and position the company as a leading player in the global agri-nutrients industry, with best-in-class capabilities in manufacturing, operation, supply chain, and aftermarket services,” Shamsaddin remarked.
The management of EIHL saw the deal as a solution towards scaling their provision of quality agricultural inputs to the African continent and expressed excitement over finding a partner that shares their vision and passion.
“This agreement will further consolidate our long-standing relationship. EIHL gains from an assured and reliable supply from a global AN leader with a strong global brand. The partnership will also allow us to expand our market reach across Africa and even other continents.” said Ashish Lakhotia, EIHL CEO.