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A. de C.V or Olmeca to Yara Internatioal A.
S.A. The sale of SQM's stake in Olmeca netted USD 4.
9 million, which will have a before-tax positive effect of approximately USD 1.1 million. The Santiago, Chile-based Company said Olmeca's business comprises the trading of commodity fertilizers and specialty plant nutrients in Mexico, where it has an estimated market share of 4%, with revenues in excess of USD 50 million in 2005.
Elaborating the reason for the sale of Olmeca, SQM said Olmeca is no longer a key distribution channel of SQM's products. Back in 1997, when SQM began to participate in Olmecal, there were no reliable distribution channels for fertilizers in Mexico. Considering that now less than 25% of SQM specialty plant nutrients sold in Mexico are distributed through Olmeca, this company is no longer a distribution channel for SQM's products.
SQM Comercial de Mexico S.A. de C.
V., SQM's subsidiary in Mexico, will concentrate in the water soluble and foliar segments, carrying a complete product portfolio based on SQM and Yara key products. In addition, SQM Comercial de Mexico S.
A. de C.V.
will also handle SQM's granular products. SQM is trading at $120.74, down $0.
36 or 0.30% on a volume of 16,200 shares.
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