Brazil’s Administrative Council for Economic Defense (CADE), the antitrust regulator, has given the green light for the Yara International ASA-EuroChem Group AG deal for the Serra do Salitre phosphate project. CADE approved the deal without restrictions, according to a Bloomberg report on Sept. 6, citing the Official Gazette and CADE’s website.
Yara and EuroChem announced in early August that they had signed a Share Purchase Agreement for EuroChem to buy Yara’s Serra do Salitre phosphate project in Brazil’s southeastern Minas Gerais state for a cash consideration of US$410 million, subject to final purchase price adjustments (GM Aug. 6, p. 1).
The Serra do Salitre assets comprise phosphate mining operations at an open pit, including a tailings dam, with an annual production capacity of approximately 1.2 million mt/y of phosphate rock, and an ongoing project to construct phosphate fertilizer operations with a projected production capacity of approximately 1.0 million mt/y at completion.
According to EuroChem, the phosphate fertilizer plant is 50 percent complete and is expected to come on stream in 2023, reaching full capacity in 2024. The plant will have capacity to produce MAP/NP and SSP/TSP products.
EuroChem said the acquisition will strengthen its production and distribution capabilities in one of the world’s most important crop nutrient markets, and will allow the group to reduce its dependency on third-party phosphate supplies.
Yara said the Salitre divestment supports Yara’s transformation by reallocating capital and risk appetite in the coming years towards Yara’s strategic focus areas.