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| DSM to sell DSM Agro and DSM Melamine to OCI Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, and Egypt-based Orascom Construction Industries (OCI) announce that they have reached an agreement for the sale of DSM Agro and DSM Melamine to OCI for EUR 310 million on a cash and debt-free basis with effect from 1 January 2010. The intended sale is expected to close in Q2 2010, subject to regulatory and other customary approvals and notifications. For DSM the intended sale of both business groups is an important step forward in the realization of its Vision 2010 ambitions to focus on Life Sciences and Materials Sciences. The transformation of DSM's portfolio is an important prerequisite for achieving these ambitions. As announced in September 2007, DSM Agro and DSM Melamine do not fit with this focus. With the acquisition of DSM Agro, the OCI Fertilizer Group expands its customer base in key European markets to which the group will be able to offer a wider range of products including urea, ammonia, calcium ammonium nitrate (CAN), urea ammonium nitrate (UAN), and ammonium sulphate (AS). OCI believes that healthy synergies exist through a wider product portfolio and distribution infrastructure in Europe. OCI will assume responsibility for the business results of DSM Agro and DSM Melamine from 1 January 2010 onwards. OCI fully supports DSM's strategy and approach on the Chemelot site in Sittard-Geleen (Netherlands), where the main facilities of both business groups are located. Via DSM Agro and DSM Melamine, OCI will become an indirect shareholder in Sitech Services B.V. and will consequently make use of synergies in site and manufacturing services and participate in infrastructural site investments. write your comments about the article :: © 2010 Construction News :: home page |