Indian company Tata Chemicals has called off a deal on biofuels in Mozambique, where it has operated for the last eight years, the company said in a statement to the stock market cited by the Times of India.
The withdrawal follows the sale of a 95 percent stake in Grown Energy Zambeze Limited, through its subsidiary in Mauritius, to another partner, businessman Rademan Janse van Rensberg for nearly US$6 million.
Rensberg, who holds the remaining 5 percent of the company that has lost money since its establishment, will pay the agreed amount over the next five years by 31 December, 2020.
In accounts for the 2015 fiscal year, Tata Chemicals included losses related to this investment in biofuels in Mozambique.
The Times of India added that the CEO of Tata Chemicals R Mukundan has been divesting some projects in order to reduce costs and increase profit, and some time ago, for example, cancelled an investment in a fertilizer production project in Gabon .
Tata Chemicals, which gets about 40 percent of its revenue from foreign operations, is present in the United States, Europe and Kenya. (macauhub/MZ)