Carborundum Universal (CUMI), a Murugappa Group company, has entered into an agreement with Foskor (Proprietary) Limited of South Africa to acquire 51% equity stake in Foskor Zirconia (Proprietary) Limited, a South Africa-based zirconia and fumed silica maker, for an undisclosed sum.

The acquisition agreement has been signed by the companies Thursday in South Africa.

The deal will be routed through Cumi International, a wholly-owned subsidiary of Cumi, which will hold a 51% stake in FZL, while the balance will be held by Foskor (Proprietary) Limited and two other South Africa-based entities.

Foskor Zirconia is the third-largest producer of the mineral in the world, with installed capacity of 4,200 tons a year. It had sales of $16 million in 2007/08.

The agreement, however, is subject to regulatory approvals in South Africa.