EuroChem to purchase controlling share in Fertilizantes Heringer
Published by Nicholas Woodroof,
With a total of 14 storage, blending and distribution units in the southeast, midwest, south, and northeast regions, Fertilizantes Heringer is considered a significant contributor to Brazilian agriculture as the country’s fourth-largest distributor in terms of installed capacity, at more than 4 million tpy.
“This acquisition, following anti-trust approval, will enable EuroChem to better serve the total market of Brazil – from north to south – even more reliably, while providing more outlets for our full product line of standard and premium fertilizers,” noted EuroChem Group Global Head of Sales and Distribution Charles Bendaña.
“It will also help us achieve higher efficiency in our shipping and logistics programs in order to provide reduced costs to our customers in Brazil, as well as increased netbacks to our global production facilities. Taken with our recent full acquisition of Fertilizantes Tocantins and the ongoing purchase of the Serra do Salitre phosphates project, this move will help anchor the Group as a leader both locally and abroad,” he added.
The deal is valued at 554 562 780 Brazilian reais, subject to customary price adjustment arrangements, and has been submitted for approval to the Brazilian antitrust authority – the Administrative Council for Economic Defense (CADE).
Lieven Cooreman, EuroChem Fertilizantes Tocantins CEO and Head of EuroChem’s Commercial Division in South America, noted: “With Heringer joining a South America distribution base that already includes EuroChem Fertilizantes Tocantins in Brazil and EuroChem Emerger Fertilizantes in Argentina, this deal, once approved, will cement our reputation as the crop nutrient supplier of choice across great swathes of the continent. This naturally gives our customers added confidence in our ability to cater to any crop anywhere, in a timely manner.”
In 3Q21, Heringer reported last 12-month sales of 1.5 million tpy.
EuroChem fully concluded the acquisition of Fertilizantes Tocantins (FTO) in August 2020, and in August 2021 entered into a deal to acquire Serra do Salitre, an upstream integrated phosphate project at an advanced stage in the state of Minas Gerais, which will add 1 million tpy to EuroChem’s annual phosphate production capacity as it reaches full production capacity in 2024. Antitrust clearance has been obtained and closing is expected to take place shortly.
Read the article online at: https://www.worldfertilizer.com/nitrogen/13012022/eurochem-to-purchase-controlling-share-in-fertilizantes-heringer/
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