Russian agrochemical holding EuroChim, owned by Andrey Melnichenko, intends to acquire BASF’s fertilizer assets located in Belgium and France.
OJSC “Mineral and Chemical Company “EuroChem” announced its intent to acquire 100% of BASF’s fertilizer assets located in Antwerp, Belgium. EuroChem also intents to acquire BASF’s 50% stake in the PEC-Rhin Joint Venture in Ottmarsheim, France (“PEC-Rhin”). PEC-Rhin is a joint venture between BASF and France’s GPN, a Total SA subsidiary. The total value of the transaction is estimated about EUR 700 million.
The assets, which have a combined annual production capacity of approximately 2.5 million metric tonnes of fertilizer, include CAN / AN (calcium ammonium nitrate / ammonium nitrate), Nitrophoska® fertilizers, nitrophosphoric acid, and three nitric acid plants in Antwerp and CAN / AN fertilizers, and ammonia and nitric acid facilities at PEC-Rhin.
“The acquisition of BASF’s fertilizer complex in Antwerp is a major milestone in EuroChem’s growth strategy to enhance its exposure to the European market. These high-quality assets will provide us with added-value production coupled with strategic logistics positioning. The same would be true for the 50% share of PEC-Rhin,” commented Dmitry Strezhnev, EuroChem CEO.
EuroChim is the largest fertilizer producer in Russia. In 2010 the company sold out 8.1 mln tons of fertilizer.
Author: Irina Fomina