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On March 31, 2012, BASF finally successfully finished the deal of its purchase by EuroChem fertilizer production assets in Antwerp, Belgium in accordance with previously announced plans. This is stated in the message of the Mineral and Chemical Company EuroChem.
The deal was approved by the relevant antimonopoly authorities. The deal amounted to €830 million, including a deferred payment of €130 million, payable between 2013 and 2016. BASF’s profit before tax on this transaction was about €600 million and will be reflected in the first quarter of the year.
The total production capacity of the acquired asset includes the production of CAN/AN, complex NPK, as well as 3 fertilizer production workshops for the production of nitric acid. Assets are allocated to a separate company, which was named EuroChem-Antwerp. Also, there is information that more than 330 workers were successfully transferred after the deal was completed.
Acquisition of these assets is carried out within the framework of the strategy of the Mineral and Chemical Company EuroChem to expand its presence in the world fertilizer market, concerning two sides – through organic growth of the company and through the acquisition of other enterprises.
BASF – The Chemical Company – is the leader in the global chemical industry: the portfolio of the company’s offers includes chemicals, plastics, high-quality products and preparations to protect crops from pests, petrochemicals. According to BASF, in 2011 the company’s sales amounted to approximately €73.5 billion while the number of employees at the end of the year amounted to more than 111,000 people. BASF shares are quoted on the currency exchanges in three cities, in London and in two German cities – Frankfurt and Zurich.
EuroChem’s one of the world’s top ten chemical fertilizer producers by volume. The company produces mainly fertilizers based on nitrogen as well as phosphates & it specializes in some products of iron ore synthesis & organic ones. There is vertical integration in this group.
The scope of BASF Antwerp’s very broad: it begins with the gas production and ends on distribution and other aspects. EuroChem’s the holder of licenses for the development of potash deposits in Russia, which will allow the company to enter the number of five world leaders in terms of such a production in the world scale.