As announced by PhosAgro, shareholders of JSC PhosAgro-Cherepovets and JSC Apatit approved the re-organisation of the companies at an extraordinary general meeting of shareholders (EGM) on 14 July 2017.
PhosAgro-Cherepovets will merge into Apatit. Shareholders approved agreement on the merger of PhosAgro-Cherepovets into Apatit, as well as transfer deeds to the agreement. The merger is planned for completion around 1 November 2017.
The merger of PhosAgro-Cherepovets into Apatit and the establishment of the Kirovsk subsidiary of Apatit will help optimise management processes and remove duplications of a number of administrative functions, and increase supply efficiency by centralising and enlarging orders for goods and services. The organisational structure of PhosAgro Group will also be simplified.
Commenting on the planned merger before the EGM, PJSC PhosAgro CEO, Andrey Gurye, hoped that the company would be able to achieve even higher levels of operational efficiency from our enterprises by removing functional duplications as part of a single legal entity. He also hopes to strengthen the competitive advantages that PJSC PhosAgro’s vertically integrated business model gives in terms of producing high quality phosphate rock and phosphate-based fertilizers.”
The structure of tax contributions to the regional budgets of Murmansk and Vologda regions, where Apatit and PhosAgro-Cherepovets, respectively, are amongst the largest taxpayers, will not change significantly following the planned merger. No headcount optimisation is planned at either site as a result of the merger, and all social obligations will be maintained at previous levels.
Following an evaluation of the functioning of the combined entity, PhosAgro Group will consider the merger of JSC Metachem into Apatit, and thus the completion of the combination of the Group’s production assets into a single legal entity.
Read the article online at: https://www.worldfertilizer.com/phosphates/17072017/phosagro-to-merge-into-apatit/