OREANDA-NEWS. September 28, 2011. OJSC “Mineral and Chemical Company “EuroChem” (“EuroChem”) today announced its intent to acquire 100% of BASF’s fertilizer assets located in Antwerp, Belgium. EuroChem has also the intent to acquire BASF’s 50% stake in the PEC-Rhin Joint Venture in Ottmarsheim, France (“PEC-Rhin”). PEC-Rhin is a joint venture between BASF and France’s GPN, a Total SA subsidiary. The total value of the transaction is estimated to be approximately EUR 700 million.

The assets, which have a combined annual production capacity of approximately 2.5 million metric tonnes of fertilizer, include CAN / AN (calcium ammonium nitrate / ammonium nitrate), Nitrophoska® fertilizers, nitrophosphoric acid, and three nitric acid plants in Antwerp and CAN / AN fertilizers, and ammonia and nitric acid facilities at PEC-Rhin.

Commenting on the transactions, Dmitry Strezhnev, EuroChem CEO, said “The acquisition of BASF’s fertilizer complex in Antwerp is a major milestone in EuroChem’s growth strategy to enhance its exposure to the European market. These high-quality assets will provide us with added-value production coupled with strategic logistics positioning. The same would be true for the 50% share of PEC-Rhin.”

“Our very skilled team and the highly competitive plants will have a sustainable future and will create additional value with a strategic buyer whose core business is fertilizer,” said Dr. Andreas Kreimeyer, member of the Board of Executive Directors of BASF SE, responsible for the Chemicals segment. “Furthermore, EuroChem is an excellent partner to support our Verbund concept at the Antwerp site.”

The transaction regarding BASF’s fertilizer complex in Antwerp, which was approved by the EuroChem Board of Directors, remains subject to customary conditions and is expected to close in the first quarter of 2012. The intended acquisition of the 50% share of PEC-Rhin would also be expected to close in the same time frame. The final value of the transaction remains subject to certain closing conditions and adjustments.

Barclays Capital is acting as financial advisor to EuroChem. The global law firm Linklaters is acting as EuroChem’s legal counsel and PWC as tax counsel.