Swiss specialty chemicals producer Clariant has agreed to acquire Geosol's 50% stake and take full control of the Brazil's Companhia Brasileira de Bentonita (CBB). Financial terms of the arrangement were not announced.

Up to now, the company has been operated as a 50:50 joint venture of Clariant and Geosil, a provider of analytical services for mineral exploration.

As part of the deal, which is still subject to regulatory approval, the Swiss company will gain a state-of-the-art bentonite production facility at Vitória da Conquista in the state of Bahia.

According to Clariant, CBB has a strong market position for products used in Iron Ore Pelletizing (IOP), foundry, oil & mining drilling and civil engineering in Latin America.

Along with providing a modern production facility for its Functional Minerals business unit in Brazil, Clariant said the transaction will allow it to secure strategic raw clay reserves for its growing bleaching earth operations in Jacareí, Brazil.

Clariant CEO Hariolf Kottmann said the acquisition is in line with the specialty chemicals producer's "strategy to capture profitable growth opportunities in emerging markets." He said CBB offers "excellent access to markets with great potential" such as agriculture and feed additives and also lays the groundwork for further innovation.

Sven Schultheis, head of the Ffunctional Materials business said the investment reflects Clariant's commitment to the growing bentonite business in Latin America. "It strengthens our global position and gives us the opportunity to fully implement the technology and application know-how proven and applied around the world."