EuroChem Group AG signed investment agreement with Agrinos AS
Europe: EuroChem Group AG, a Switzerland based agrochemical company, signed
a joint equity investment and two strategic collaboration agreements with a
Norway based biological crop-additives company, that is, Agrinos AS. EuroChem
announced to acquire 22.25 million new shares in Agrinos and has an option to
acquire up to 32.633 million new shares in the next two years. EuroChem would
subscribe for new ordinary shares in Agrinos in a private placement under the
equity investment agreement.
Manor Investment SA and Havfonn AS, the existing
shareholders of EuroChem, would acquire 17.8 million and 4.45 million shares,
respectively in Agrinos. As a part of the first collaboration agreement, High
Yield Technology products of Agrinos would be added to the product portfolio of
EuroChem that has a strong distribution network
and market expertise. Second strategic collaboration has been signed to
integrate biological and chemical crop nutrition technologies for the research
and development of new products for next generation microbial and crop
nutrition products.
TechSci Research depicts that the acquisition would support further expansion of EuroChem’s
diverse portfolio of nitrogen and phosphate fertilizers with specialty products
and environmentally friendly crop-enhancing solutions.
According to
the report published by TechSci Research,
“Iran Fertilizers Market Forecast and Opportunities,
2020”, market
is dominated by nitrogen fertilizers with urea and ammonium nitrate being the
largest consumed fertilizers. The demand for fertilizers in Iran is expected to
grow at a CAGR of 3.5% during 2015 – 2020. Moreover, Iran has a huge production
base for Nitrogen fertilizers on the back of abundance of raw materials.