Private equity group MerchantBridge and partner Lafarge have assumed control of the Karbala Cement Plant.
The USD220m transaction marks the region’s largest private equity deal this year
The partners now take on full operations and management of the plant from the Government of Iraq under a 15 year lease agreement.
The Karbala Cement Plant currently produces less than 300,000 tons of cement per annum. MerchantBridge and its partner Lafarge are set to increase annual production to two million tons within 30 months.
Basil al Rahim, chief executive, says: "This is an important milestone for MerchantBridge in Iraq. It demonstrates that commitment, creative thinking and dedication, the hallmarks of our operations around the world, can overcome even the most challenging of environments. This deal clearly positions MerchantBridge as the leader in the field of direct investments in Iraq and we expect that the Karbala deal will be one of a number to follow in the coming months that will further reinforce our status in Iraq and across the wider Middle East region."
MerchantBridge is the largest private investor to date in Iraq with current investments of over USD1.5bn in debt and equity.
