BASF sell fertilizer business EuroChem €700 million

BASF to sell fertilizer business to EuroChem for €700 million

3:32 AM, 27th September 2011
BASF to sell fertilizer business to EuroChem for €700 million
Dr Andreas Kreimeyer, Member of the Executive Board, BASF.


LUDWIGSHAFEN, GERMANY: BASF has signed a contract with EuroChem, Moscow, Russia, to sell its fertilizer activities in Antwerp, Belgium. BASF also plans to sell its 50 per cent share of the joint venture PEC-Rhin in Ottmarsheim, France, to EuroChem. The total transaction value is expected to be approximately €700 million. The divestments are subject to approval and will be completed by the end of the first quarter of 2012.

In Antwerp, the scope includes plants for CAN/AN (calcium ammonium nitrate/ammonium nitrate) fertilizers, Nitrophoska fertilizers and nitrophosphoric acid as well as three related nitric acid plants. BASF is in the process to carve out the activities into a separate company. About 330 employees will transfer to the new company which will be acquired by EuroChem.

BASF also plans to sell its shares in PEC-Rhin, which produces CAN/AN fertilizers and the respective intermediates, ammonia and nitric acid. The company is a 50-50 joint venture with GPN, a member of the French Total group, and currently has about 190 employees.

“Our skilled team and highly competitive plants will have a sustainable future and will create additional value with a strategic buyer whose core business is fertilizer,” said Dr Andreas Kreimeyer, Member of the Executive Board, BASF.

“With the acquisition of BASF’s fertilizer complex in Antwerp, EuroChem will gain high-quality production assets with superior logistics that provide it with further geographical diversification and significantly improve its proximity to European customers. The same would be true for the 50 per cent share of PEC-Rhin. This is in line with our strategy to increase our share in the global fertilizer industry through both organic expansion and targeted acquisitions,” said Dmitry Strezhnev, CEO, EuroChem.

BASF’s fertilizer operations in Ludwigshafen are not included in the scope of the divestment.

(C) WOC News




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