EuroChem finalizes purchase of BASF fertilizer unit

BASF completed the sale of its fertilizer business in Antwerp, Belgium, to EuroChem on March 31, 2012, as planned, the company said this week.

The appropriate antitrust authorities have given their approval for the transaction, BASF said.

The total purchase price amounts to around €830 million, including a deferred part of circa €130 million payable over the period 2013 to 2016.

This transaction will lead to an expected pre-tax disposal gain of approximately €600 million for BASF in the first quarter of 2012, according to the company.

The scope of the transaction includes plants for CAN/AN fertilizers (calcium ammonium nitrate/ammonium nitrate), NPK fertilizers (nitrogen-phosphate-potassium) and nitrophosphoric acid as well as three related nitric acid plants.

The activities were carved out into a separate company, now named EuroChem Antwerpen NV. About 330 employees have been transferred to the new company, officials said.

“With the purchase of these facilities we are continuing our strategy to increase our share in the global fertilizer market both through organic growth and acquisitions,” said Dmitry Strezhnev, CEO of EuroChem. “I am looking forward to working with the highly experienced team in Antwerp.”

“EuroChem is a strategic partner who will support and further strengthen our Verbund concept of integration at our site in Antwerp,” said Dr. Andreas Kreimeyer, member of the board of executive directors of BASF and responsible for the chemicals segment.

“My thanks go to our former employees who have done excellent work over the past years.”

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