OREANDA-NEWS. September 15, 2010. Stirol, the major Ukrainian fertilizer producer, has been acquired by OstChem Holding AG affiliated with Group DF (owned by Dmitriy Firtash), the official representative of Group DF reported on Sep 13. The size of the stake acquired and the deal value have not been disclosed.

Millennium Capital considers the news as neutral for the company, as this information has already been priced in, giving speculative upward moves of the stock over the previous month. Currently, Ostchem Holding unites four manufacturers of nitrogen group mineral fertilizers: RivneAzot and Stirol Concern of Ukraine, Tajikazot of Tajikistan, and AS Nitrofert of Estonia. Besides, the Firtash Group also holds 50% of the share capital of the natural gas trader RosUkrEnergo, which may receive shortly at least 5.3 bcm of natural gas. It is very likely that this gas will be used in the production process of the Group’s Ukrainian chemical assets, namely that of Stirol. The company could substantially improve its production indicators, capitalizing on the opportunity to reduce the cost of production in the short run.