Israel Chemicals in Talks to Buy Haifa Chemicals for More Than $1 Billion -- Update
October 05 2018 - 11:38AM
Dow Jones News
By Ben Dummett
Israel Chemicals Ltd., a developer of fertilizers and other
chemical products, is in talks to buy Haifa Chemicals Ltd., a
supplier of specialty fertilizers, for more than a $1 billion in
cash and stock, according to a person familiar with the matter.
Tel Aviv-based ICL, which focuses primarily on agriculture, food
and engineered materials, has long been seen as a logical buyer for
Haifa, according to industry observers. The two firms have a
history of potential merger discussions and have major assets
located close to each other in Israel.
The deal talks, which could still break down, come after recent
consolidation in the fertilizer sector, including the merger of
Canadian fertilizer and chemical companies Potash Corp. of
Saskatchewan Inc. and Agrium Inc. which closed at the start of this
year.
The Israeli deal could result in synergies approaching $100
million a year, the person familiar with the matter said. The cash
component of the deal is expected to be around $600 million.
In an emailed statement Friday, a Haifa spokeswoman said that
the company is "always targeted" but "there is nothing new
regarding the ownership," as no deal has been done.
Haifa was founded in 1966 to try to capitalize on Israel's
natural resources of potash from the Dead Sea and phosphates in the
Negev region. The group has been under private ownership since 1989
and is owned by a U.S. holding company controlled by the Trump
Group.
The deal would see Trump Group founders Jules and Eddie Trump,
who are not related to President Trump, become major shareholders
in the combined company.
ICL's mining and production sites are located in Israel, Europe,
North and South America, and China. It employs 13,000 people
world-wide according to its website. Haifa's main production plant
is located in Israel and additional production facilities are
located in Lunel, France and Savannah, Ga.
Write to Ben Dummett at ben.dummett@wsj.com
(END) Dow Jones Newswires
October 05, 2018 11:23 ET (15:23 GMT)
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