29 Mar 2022 11:40

EuroChem closes deal to buy controlling stake in Brazilian fertilizer distributor Fertilizantes Heringer

MOSCOW. March 29 (Interfax) - Russia's EuroChem Group on March 28 closed a deal to buy a 51.48% stake in Brazilian fertilizer distributor Fertilizantes Heringer S.A., EuroChem said in a statement.

The deal was valued at BRL554.6 million or about $116 million at the current rate.

Fertilizantes Heringer's shareholders will elect a new board of directors and management board this wek.

Fertilizantes Heringer has 14 storage, blending and distribution facilities in Brazil and is the country's fourth largest distributor in terms of installed capacity, at more than 4 million tonnes per year.

EuroChem founder Andrei Melnichenko was also included in the EU sanctions list at the beginning of March. The company said on March 9 that Melnichenko was no longer its beneficiary and had resigned from the board of directors.

Melnichenko previously controlled 90% of the group's parent company, Switzerland-based EuroChem Group AG, through Cyprus-based AIM Capital SE. The other 10% of shares are held in treasury.