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Indonesian firm buys out Mitsui in fertiliser company
Publication Date : 09-05-2014
State-owned fertiliser producer PT Pupuk Indonesia Holding Co. recently acquired Japan’s Mitsui & Co. Ltd. ammonia fertiliser plant in East Kalimantan for 1.5 trillion rupiah (US$129 million). The acquisition was conducted on April 1.
“The ammonia fertiliser factory in East Kalimantan has a total annual capacity of 660,000 tonnes. We thought that we could take it over in 2018, but since Pupuk Indonesia had the capacity to carry out the acquisition this year, the Mitsui factory now belongs to us,” State Owned Enterprises Minister Dahlan Iskan said in Jakarta on Thursday as quoted by kompas.com.
Mitsui’s factory has been operating in the country for 10 years and based on a bilateral agreement the factory should be fully controlled by Indonesia in on or before an agreed time.
Dahlan said that the initial figure for the acquisition was 4 trillion rupiah. “But, [Pupuk Indonesia] negotiated the price and got the factory for 1.5 trillion rupiah,” he added.
However, he said, 60 per cent of the annual ammonia production would be sent to Japan. “This is a good deal because we have a strong market in Japan and we sell the ammonia at an international standard price,” added.