EuroChem Group AG (“EuroChem”) announced that it has acquired Emerger Fertilizantes S. A., a private distributor of premium and standard fertilizers in Argentina. The amount of the transaction and other conditions were not disclosed.
Emerger sells about 50 000 tonnes of fertilizers per year and has its own warehouse of 12,000 tonnes. About 60% of sales of the company is in premium fertilizers, particularly for tobacco industry, and the rest is sales to customers in northeast, Central and Central-Eastern Argentina.
EuroChem continues to expand its distribution network for better access to some important group of markets, in particular through recent acquisitions of distributors in Brazil, Bulgaria, Hungary and Spain. The acquisition of Emerger will significantly improve positions of “EuroChem” in Latin America. This important region currently accounts for 11% of group’s sales “, – stated in the company’s message.
According to the Argentine Association of manufacturers of fertilizers (Fertilizar Asociación Civil), it is expected that the fertilizer market in Argentina will grow from 3.4 million tonnes in 2016 and 5.5 million tonnes in 2020.