Siberian Business Union buys nitrogen fertilizer assets from Sibur
MOSCOW/KEMEROVO. Dec 21 (Interfax) - CJSC Siberian Business Union (SDS) has bought Kemerovo Azot , the Angarsk Nitrogen Fertilizer Plant and LLC Biysk Railcar Repair Enterprise from Sibur Mineral Fertilizers, SDS said in a statement.
SDS has thus consolidated Sibur Mineral Fertilizers, paying $1 billion for the entire deal, a source familiar with the details of the deal told Interfax.
OJSC Perm Mineral Fertilizers was not included in the transaction. The deal will be approved at the next Sibur Holding board of directors meeting slated for December 22, the statement said.
This week, Sibur head Dmitry Konov said that the company plans to sell Perm Mineral Fertilizers and its fertilizer producing assets in the Kemerovo region separately. UralChem expressed interest in the Perm plant on Wednesday.
SDS said in a statement with reference to its president Mikhail Fedyaev that the company will already take over operational management at the Kemerovo plant next week. SDS is interested in chemical assets because its structure contains agricultural and coal enterprises. "Ammonium nitrate is necessary for rural areas and for carrying out blasting operations at strip mines. We have a plant that produces explosive substances, the main component of which is nitrate. Besides that, SDS considers its new assets as a major business," Fedyaev said.
Russia's Federal Antimonopoly Service (FAS) gave permission to two companies, CJSC Agroprodmir and SDS, for the purchase of Sibur Mineral Fertilizers.
Kemerovo Azot provides around 80% of ammonium nitrate supplies to agricultural and industrial consumers in Siberia and the Far East. It produces ammonium nitrate for industrial use, including for mining enterprises.
Sibur Mineral Fertilizers' consolidated revenue was $978 million in 2010. Its earnings before taxes, depreciation and amortization (EBITDA) was $222 million, and EBITDA margin was 23%.
The Siberian Business Union was established in August 2004. Company assets are managed through sector companies - SDS Ugol, SDS-Mash, Novotrans, SDS-Stroy, SDS-Alko, SDS-Media Holding and SDS-Energo.
According to Interfax's SPARK database, Yury Kachalkov owns 100% of SDS.
