The International trading arm of the Madhvani Group, MISA Inc, has bought a Belgian-based phosphates and sulphur chemicals firm, Rhodia Chemie, for $40m (sh73.6b), a statement has said.

The statement, which was signed by Nilesh Kanabar, MISA"s manager, said the $40m deal would make Madhvani a major manufacturer of phosphate derivatives in Europe, helping it develop its phosphate mining project in Uganda.

"This could lead to exports from Uganda of products worth more than $60m (sh110b) annually," Kanabar said.

Madhvani has got huge phosphate mining rights in eastern Uganda.

Nitin Madhvani, MISA's president, signed the deal in Paris at the end of August.

"MISA has worked closely with the government of Flanders (a province in Belgium) on this acquisition and appreciates its support", Kanabar said.