“EuroChem” acquires distributor in Bulgaria

EUROCHEM
EuroChem

EuroChem continues to actively expand its foreign assets. Following the purchase of a Brazilian trader last Summer the company became the owner of a large distributor in Bulgaria. This allows the company to operate in its main markets more efficiently.

The parent holding company “EuroChem Group AG” of Russian “EuroChem” acquires 100% stake in the Bulgarian distributor of fertilizers Agricola Bulgaria. The company has already received permission from the local regulator. The amount of the transaction has not been disclosed. Agricola Bulgaria holds about 9% of the market of distribution of fertilizers in Bulgaria, with sales volume of about 70-80 thousand tons of fertilizers per year. The distributor was part of the European trading unit of the canadian “Agrium” prior to acquisition by “EuroChem”. The asset will be renamed to “EuroChem Agro Bulgaria”.

Expanding sales and production capacity in key markets is coherent strategy “EuroChem”. The company owns a production plant of mineral fertilizers in Antwerp, Belgium, and Lithuanian factory of phosphate fertilizers “Lifosa”. From July 2016 it owns a controlling stake (50% + one share) of Fertilizantes Tocantins — the leading company in the blending and distribution of fertilizers in Brazil (sales volume — more than 700 thousand tons). In October, the company opened a distribution center for fertilizers in Hungary.

In Russia the group owns “Nevinnomyssky Azot”, “Novomoskovsk nitrogen”, “Phosphorus”, “Belorechenskie fertilizers” and Kovdorsky GOK. The main shareholder is Mr. Andrey Melnichenko, another 10% — the is owned by Cypriot “Midstream Group Limited” of “EuroChem” CEO Dmitry Strezhnev.

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