Orascom in Acquisition of Ammonium Sulphate Distribution Rights from EuroChem

December 6, 2012

Cleary Gottlieb represented Orascom Construction Industries (OCI) in the acquisition of distribution rights for ammonium sulphate (AS) produced by Lanxess at its Antwerp facilities in Belgium. The distribution rights were acquired from fertiva, a distributor of nitrogenous fertilizers and wholly owned subsidiary of EuroChem. The deal entails up to approximately 1 million metric tons of AS including approximately 0.2 million metric tons of granular AS. In combination with its existing distribution rights, this acquisition makes OCI a leading supplier in the European market and in Brazil.

OCI is a leading international fertilizer producer and construction contractor based in Cairo, Egypt. Its Fertilizer Group is a strategic owner and operator of nitrogen fertilizer plants in Egypt, the Netherlands, the United States, and Algeria with an international distribution platform spanning Europe, North and South America, Southeast Asia and Africa.

EuroChem is a Russian agrochemical company belonging to the conglomerate of Andrey Melnichenko. In 2012, EuroChem acquired fertiva GmbH from the German K+S Group. fertiva GmbH had a long-term contract with Lanxess, a leading specialty chemicals producer, for the supply of ammonium sulphate, which has now been assumed by OCI.