The deal with Yunnan Yuntianhua, worth US$250m, has been approved by Chinese regulators.
The move will deepen ICL’s strategic alliance with YTH, with which it formed with Yunnan Phosphate Chemicals Group last October, which is expected to provide ICL with a platform to penetrate growing Asian specialty phosphate markets.
Over the next five years ICL and YTH plan to build plants and triple the the joint-venture’s white phosphoric acid capacity. The partners have also established a phosphate R&D platform in Yunnan province that is focused on developing next-generation phosphate-based products and process technologies.
"Our strategic investment in YTH is a key element of our strategic alliance with Yunnan Yuntianhua,” said Stefan Borgas, ICL’s chief executive. “We believe that our representation on several YTH governing bodies will help facilitate our efficient management of the YPH JV.”
ICL will now nominate two of the 11 YTH board members. A phosphate business committee will then be formed to provide advice and recommendations on YTH's phosphate business.