Sector News

Russia’s Uralkali, Uralchem to buy Brazil’s Fertilizantes Heringer

September 26, 2019
Chemical Value Chain

Russian fertilizer and chemical companies Uralkali and Uralchem have agreed with Fertilizantes Heringer SA to become controlling shareholders in the Brazilian firm that is now under bankruptcy protection.

In a securities filing, Fertilizantes Heringer said the Russian companies would buy the Brazilian firm’s shares for 2 reais ($0.4796) each in a deal that would result in a capital increase of up to $110 million.

The Russian companies are already doing business in Brazil, one of the largest markets for fertilizers in the world, selling potash and nitrogen for companies who prepare and distribute formulations for farmers.

With Heringer, they will expand their presence in the country that is a leading global food producer.

Heringer used to be one of the 10 largest fertilizer companies in Brazil before launching a plan to restructure operations earlier this year, and then, filing for bankruptcy protection shortly after.

The company closed some installations, including plants and regional offices.

Uralkali is among the 10 largest players in the global fertilizer market. It is a large producer and exporter of potash, one of the three key components of the most popular formulations of fertilizers that also contain nitrogen and phosphorus.

Uralchem produces nitrogen and the company is a shareholder in Uralkali.

By Marcelo Teixeira

Source: Reuters

Related News

May 8, 2021

Nouryon announces intention to spin-out Nobian, its base chemicals business, strengthening focus on key growth end-markets

Chemical Value Chain

The separation is expected to be completed by early Q3, following the receipt of all relevant approvals, including final Board approval. Nouryon intends to reduce its own debt with proceeds received from a planned external financing by Nobian.

May 8, 2021

US Trinseo seeks to build Asian PMMA plant, compounding line

Chemical Value Chain

Trinseo became a producer of the resin when it acquired Arkema’s PMMA business. It announced that it closed on the €1.14bn deal earlier this month.

May 8, 2021

SIG unveils tethered caps for carton packs ahead of EU’s Single-Use Plastics Directive

Chemical Value Chain

As part of the EU’s Single-Use Plastic Directive (SUPD), it will become mandatory for caps and lids to remain attached to all beverage containers up to three liters in capacity from 2024.

Send this to a friend