Dutch firm Royal DSM BV has entered into an agreement with Orascom Construction Industries (OCI) to sell DSM Agro and DSM Melamine for €310m ($417m) on a cash and debt-free basis.
After the acquisition of DSM Agro the OCI Fertilizer Group will be able to offer a wider range of products including urea, ammonia, calcium ammonium nitrate, urea ammonium nitrate and ammonium sulphate.
Subject to regulatory and other customary approvals and notifications, the transaction is expected to close in Q2 2010.
One day before the closing, all employees in DSM Agro and DSM Melamine will be transferred to DSM Agro BV and DSM Melamine BV, the companies to be acquired by OCI.
DSM Agro is a producer of ammonia and high-nitrogen fertilisers for grasslands and agricultural crops and DSM Melamine is a major producer of melamine.
