Israel Chemicals is in talks to buy Haifa Chemicals, a supplier of specialty fertilizers, for more than a $1 billion in cash and stock, the Wall Street Journal (WSJ) reported on Oct. 5.
The cash component of the deal is expected to be around $600 million, the report said, citing unnamed sources.
ICL, which focuses on agriculture, food and engineered materials, has long been seen as a logical buyer for Haifa Chemicals, and the two firms have held merger discussions before, the WSJ said. The deal could result in synergies approaching $100 million a year. ICL hadn’t responded in a Tel Aviv Stock Exchange announcement as of late Sunday, Oct. 7. A Haifa Chemicals spokeswoman said, “there is nothing new regarding the ownership,” as no deal has been done.
Haifa Chemicals is owned by a U.S. holding company owned by Florida-based brothers Jules and Eddie Trump. ICL shares ended up 0.9 per cent at 22.90 shekels ($6.31)