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.