EuroChem Group Acquires Brazilian Fertilizer Distributor Fertilizantes Tocantins

Brazil: EuroChem Group AG, a global fertilizer manufacturer headquartered in Switzerland, has acquired a leading fertilizer distributor Fertilizantes Tocantins in Brazil. The company has purchased 50% stake plus one share in Fertilizantes Tocantins, which is one of the leading fertilizer distributor in Brazil. The deal is subject to regulatory approval and is expected to be finalized by the end of August 2016. Fertilizer sales of the Fertilizantes Tocantins stood at 740,000 Tons and has been delivering double digit sales growth over the last seven years. Tocantins along with an established network of 2000 customer. This deal would also help the company in increasing their offerings of high quality fertilizers to local farmers in Brazil.

TechSci Research depicts that the acquisition of Fertilizantes Tocantins would aid EuroChem in strengthening its position in the Brazil, which is the fifth largest market for fertilizers across the globe. Furthermore, this acquisition would enable EuroChem to address the growing demand for fertilizers in Brazil, which is projected to exhibit to grow two times as fast as the global fertilizers demand through 2025.

According to the recent report published by TechSci Research, “Global Water Soluble Fertilizers Market By Type, By Composition (Straight and Complex), By Grade (NPK, NP, PK and Others), By Structure, By Application, By Crop, By Region, By Sales Channel, Competition Forecast and Opportunities, 2011-2021”, the global water soluble fertilizers market is projected to grow at a CAGR of over 5% during 2016-2021, on account of rising population, growing demand for food grains, and rising concerns related to depleting ground water resources. Water soluble fertilizers are also being extensively used in order to increase yield, as they are easy to apply and require less amount of fertilizers and water usage. Water soluble fertilizers dissolve faster, have a higher utilization rate and are absorbed quickly as compared to conventional chemical fertilizers.