Poland-based chemical company Grupa Azoty S.A. has reportedly completed the acquisition of Compo Expert Group, a German specialty fertilizers producer, for €9 million lower than the maximum possible price. However, Raiffeisen Centrobank (RCB) allegdly stated that the non-transparency regarding the acquired debt in the agreement has remained a major concern.
Apparently, the transaction was closed for €226.6 million, which was announced on November 26, 2018. The market capitalization of Grupa Azoty fell after it had announced the intended acquisition in early September. The company’s shares were seemingly under pressure once again, after it confirmed the acquisition of Compo Expert Group.
Dominik Niszcz, RCB’s chemicals equity analyst, mentioned that the recent news about the approvals were neutral for the stock. The final price could be viewed as marginally positive, he added, but Compo’s level of debt is still not known, which makes the information about this equity price of limited value for the analysts.
On November 27, 2018, 17:00 Warsaw local time, the share price of Azoty was 4.3 per cent lower on the Warsaw Stock Exchange as compared to its previous close at zloty (Zl) 30.68. After RCB raised concerns about the lack of information on debt in the deal, Azoty said in a statement that the debt ratios would be growing, but within the scope of the financing plan of the company.
For the record, Compo Expert Group produces high added-value specialty fertilizers used by professionals in the markets of South Africa, the Americas, Europe and Asia. Key production assets of the company are located in Vall d’Uixo, Spain, and Krefeld, Germany.
Compo Expert purportedly manufactures liquid fertilizers and bio stimulants, fertigation and foliar fertilizers, controlled release fertilizers (CFR) and slow release fertilizers (SRF), among other products. It also produces specialty potassium, phosphorous, nitrogen fertilizers with a high nutrient concentration.