05 June 2013 13:35 [Source: ICIS news]
LONDON (ICIS)--Fertilizer producer Grupa Azoty has signed an agreement with Poland’s treasury ministry for the acquisition of an 85% stake in Polish sulphur mining company Zaklady Chemiczne Siarkopol, the group said on Wednesday.
The price of the transaction – which is contingent on the approval of competition regulators – was not disclosed, although investment bank WOOD & Company has estimated it at around €71.6m ($94.2m).
Siarkopol’s output of approximately 300,000 tonnes/year of liquid sulphur is currently purchased by the newly-consolidated ZAT group as feedstock for its fertilizer production.
The agreement to allow Grupa Azoty to acquire Siarkopol gives the fertilizer producer additional and valuable feedstock integration, said Raiffeisen Centrobank.
The treasury ministry’s assent to the deal is part of the Polish government’s plan to turn state-controlled Grupa Azoty into a “national champion”, it added.
Siarkopol, based in Grzybow, southeastern Poland, is notable for the Osiek sulphur mine – the only mine in the world where sulphur is extracted using the underground melting method.
($1 = €0.76)
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