URALCHEM, JSC announces the closure of the deal to acquire shares in Uralkali, one of the world's largest producers of potassium chloride. After the transaction, URALCHEM, JSC obtained the right to control more than 75% of Uralkali’s authorized capital.
URALCHEM’s acquisition of control over Uralkali will provide the companies with the opportunity to continue a consistent policy of increasing the efficiency of production, logistics, and sales of both groups through the formation of packaged offers to consumers, as well as the opportunity to present the widest range of products based on nitrogen, potassium, and phosphorus in key consumer markets around the world.
Sberbank financed the acquisition of a controlling stake in Uralkali under a long-term loan agreement structured as a syndicated loan in Russian law (according to the Russian LMA documentation form).
Dmitry Mazepin, Chairman of the Board of Directors of URALCHEM, JSC:
URALCHEM's acquisition of a controlling stake in Uralkali is a commercial project based on the high marginality of the potash fertilizer market, confidence in its further growth, and stable demand for the company's products. We see the potential for increasing the efficiency of URALCHEM and Uralkali due to shared experience, standardization of processes, and joint application of the best practices.
The deal with Sberbank was a logical continuation of the fruitful cooperation between the bank and URALCHEM. Sberbank is a strategic and reliable partner of the company both in terms of financing and traditional banking services, as well as in implementing advanced digital solutions and increasing efficiency. We would like to thank the bank for their trust and assistance in financing and organizing this complexly structured transaction in a short time and highly appreciate our mutually beneficial partnership."