Brazil’s state-owned Petroleo Brasileiro (Petrobras) on Aug. 29 announced that it has entered the binding phase regarding the full sale of the Nitrogen Fertilizers Unit III (UFN-III). Potential buyers qualified for this phase have received a process letter with detailed instructions on the divestment process, including guidelines for carrying out due diligence and for submitting binding proposals.
Petrobras has made two attempts to sell UFN to Russia’s Acron Group, but both fell through (GM April 29, p. 30; Nov. 27, 2019). The plant has reportedly been attracting the attention of Yara International ASA, EuroChem Group AG, and two Brazilian companies – chemical and fertilizer producer Unigel Group and steel and iron ore producer Cia Siderugica Nacional SA (CSN) (GM Aug. 5, p. 36).
UFN-III is an industrial unit of nitrogen fertilizers located in Três Lagoas, in the state of Mato Grosso do Sul. The construction of UFN-III began in September 2011, but was interrupted in December 2014, with physical progress of about 81%. One hard-and-fast requirement for the buyer is reportedly a commitment to complete UFN-III’s construction. Upon completion, the unit will have a projected urea and ammonia production capacity of 3,600/mt/d and 2,200/mt/d, respectively.