Coromandel International, an agri inputs and solutions provider from the Murugappa group, will acquire a 45 per cent stake in Baobab Mining and Chemicals Corporation (BMCC), a rock phosphate mining company, based out of Senegal (Africa) for about ₹225 crore.

The deal includes a loan infusion of ₹75 crore into the target company. The acquisition gives Coromandel access to rock phosphate, a key raw material for manufacturing phosphoric acid, an intermediate used for phosphatic fertiliser production.

Coromandel operates three fertiliser units which manufactures about 30 lakh tonne of phosphatic fertilisers, making it the largest manufacturer and marketer of phosphatic fertiliser in the country. “This investment will help in strengthening Coromandel’s backward integration and will ensure long term supply security of the key raw material,” Arun Alagappan, Executive Vice Chairman, Coromandel International, said in a statement on Friday.

At full capacity, BMCC can meet upto one-third of the company’s rock phosphate requirement. The company has arrangements with players like Tifert (Tunisia) and Foskor (South Africa) for meeting its phosphoric acid requirements. Further, it has been augmenting its captive phosphoric acid production at Visakhapatnam plant and is sourcing rock from various countries.

The acquisition is happening through Coromandel International’s wholly-owned subsidiary Parry Chemicals. The transaction is expected to be completed in the second quarter of this financial year, a company statement said.