Kumar Mangalam Birla to acquire Chinese phosphate firm

Mumbai: The Aditya Birla Group is close to making another acquisition in China, three years after it acquired a carbon black unit in the country. The group is now in advanced stages of negotiation to buy the majority stake in a Chinese rock phosphate company.

Rock phosphate is used to produce phosphoric acid for ammoniated phosphate fertilisers, feed additives for livestock, elemental phosphorus and a variety of phosphate chemicals for industrial and home consumers.

In 2005 the Aditya Birla group acquired only one firm, St Anne Nackawic Pulp Mill in Canada, for Rs 450 crore.

Sources say the Aditya Birla group will pick up a majority stake in the Chinese company, while the local promoter will hold the remaining shares.