Russian fertilizer producers PJSC Uralkali and URALCHEM Holding P.L.C. agreed to become majority shareholders of Brazil-based Fertilizantes Heringer S.A., which is currently under bankruptcy protection, Reuters reported Sept. 23, citing a securities filing.
Uralkali and Uralchem will buy shares in Fertilizantes Heringer for 2 Brazilian reais apiece, resulting in a capital increase of up to US$110 million, the report said.
According to Reuters, Fertilizantes Heringer used to be one of the biggest fertilizer firms in Brazil before filing for bankruptcy protection earlier this year. The company has closed some installations, including plants and regional offices.
With the deal, the two Russian companies are expected to expand their footprint in Brazil, one of the world's largest fertilizer markets, the report said.
As of Sept. 23, US$1 was equivalent to 4.17 reais.
