Russian PhosAgro merges subsidiaries to optimise operations

05 May 2014 21:33 Source:ICIS News

HOUSTON (ICIS)--Russian phosphate producer PhosAgro announced on Monday that it has completed the reorganisation of two of its subsidiaries by merging OJSC Balakovo Mineral Fertilizers into OJSC Apatit.

Moscow-based PhosAgro, one of the world’s leading vertically integrated phosphate-based fertilizer producers, said the merger of Balakovo Mineral into Apatit will help to optimise management processes and eliminate certain duplicate administrative functions.

It is expected that the transaction will also help lower costs through centralised purchasing and economies of scale with regards to orders of goods and services.

Company officials added that after evaluating the merger and the functioning of the unified company, PhosAgro plans to consider joining together its remaining production assets into a single legal entity.

 

By Mark Milam