Uralchem became interested in grain trade

Uralchem is considering acquiring the Russian assets of Cargill and Viterra, which are among the world’s largest grain traders. They will likely cease their activities in Russia next year. Meanwhile, their business largely intersects with the activities of Uralchem.

Viterra, together with Demetra-Holding (45% owned by VTB bank), operates a terminal in the port of Taman with a capacity of 5 million tons of grain per year and owns a terminal in Rostov-on-Don with a capacity of 1.5 million tons per year. Cargill owns a stake in the KSK terminal with a capacity of 6 million tons of grain per year, located in the port of Novorossiysk, and an enterprise for the production of feed ingredients and starch and molasses products.

“The probable acquisition by Uralchem of the Russian assets of Cargill and Viterra may become a unique case in the world practice: not a single mineral fertilizer producer has been involved in grain trading until today. Such a deal will allow Uralchem to diversify its activities and at the same time ensure the stability of grain supplies outside Russia, taking it out of the control of foreign players,” commented the information and analytical service of Fertilizer Daily.

Source: Kommersant