Acquisition of 51% of the share capital of TAK Agro & Chemicals Limited

This is a notification to the Federal Competition and Consumer Protection Commission (the Commission) in respect of a proposed acquisition of 51% of the issued share capital of TAK Agro and Chemicals Limited (Tak Agro or the Target) by Petchem Investment Holdings Pte. Ltd (PIH or the Acquirer) (the Proposed Acquisition).

Tak Agro is a limited liability company incorporated and subsisting under the laws of the Federal Republic of Nigeria engaged in the business of importing, blending and distributing NPK (Nitrogen, Phosphorus, Potash) fertiliser to serve the agriculture sector in Nigeria.

PIH is a company incorporated under the laws of the Republic of Singapore. PIH is part of the Indorama global group, which is involved in manufacturing a multitude of products including nitrogen fertilizers, phosphate fertilizers, polyethylene, polypropylene, polyester, textiles, cotton fibre, and medical gloves. PIH is, however, an investment holding Company and does not currently have operations in Nigeria.

The Proposed Acquisition involves the Nigerian NPK fertiliser blending industry in which the Target currently has business activities. The Proposed Acquisition is part of PIHs strategy to pursue growth in Nigeria through merger and acquisition activities, in order to create long-term value and shared prosperity for all its stakeholders i.e., its shareholders, the Nigerian Government, host communities, its employees and Nigeria as a whole.

It is, therefore, respectfully submitted that no horizontal, vertical, or conglomerate competition concerns will arise in the Nigerian NPK fertiliser blending industry as a result of the Proposed Acquisition. In addition, no public interest concerns will arise as a result of the Proposed Acquisition and there will be no negative impact on employment in Nigeria.