Saudi investment company in Egypt to acquire 25 per cent of fertilizer giant MOPCO

Saudi investment company in Egypt to acquire 25 per cent of fertilizer giant MOPCO

The recently launched Saudi-Egyptian Investment Company (SEIC) is set to acquire 25 per cent of stakes in Egyptian fertilizer giant Misr Fertilizers Production Company (MOPCO) for an unrevealed amount.

The deal, Arab Finance reports citing a source who asked not be named, might have been executed Tuesday or it would be carried out this Wednesday in the Egyptian Exchange (EGX).

The transaction is taking place few days after the Saudi Public Investment Fund (PIF) announced SEIC establishment. SEIC would invest in swathes of Egypt’s promising sectors including infrastructure, real estate development, healthcare, financial services, food and agriculture, manufacturing, and pharmaceutical, along with other investment opportunities.

The wealth fund said the SEIC will work with the Egyptian private sector to enlarge PIF’s access to investment opportunities across the Arab country.

In March, Egypt and Saudi Arabia signed an agreement to lure investments of $10 billion in cooperation with the Sovereign Fund of Egypt (TSFE) and the PIF. Saudi Arabia had previously pledged $15bn to support Egypt. SEIC activities will increase significantly the kingdom’s investment in Egypt whose economy has been hit hard by the pandemic and the ongoing Russia-Ukraine crisis.

Established in 1998, MOPCO is a state-owned company specialized in the production of fertilizers, ammonia, and nitrogen.

MOPCO is one of Egypt’s biggest exporters of urea as it produces around 2 million tons per annum and exports its output to Europe, South America, Asia, and Africa.

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