Cherepovets (Vologda region) – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated producers of phosphate-based fertilizer and high-grade phosphate rock, announces the completion of the merger of JSC PhosAgro-Cherepovets into JSC Apatit (Cherepovets).
As of today, 1 November 2017, JSC PhosAgro-Cherepovets ceases its activities as a legal entity. All property, obligations and rights under contracts, and income from the sale of goods are now the property of JSC Apatit. On 2 June 2017, JSC Apatit was re-registered in Cherepovets in the Vologda region from the city of Kirovsk in the Murmansk region, where the Kirov branch of JSC Apatit was established.
PhosAgro CEO Andrey Guryev said: "We believe that the merger should contribute to further improving efficiency and the competitiveness of our products, as well as to PhosAgro’s busienss as a whole.”
The merger does not entail significant changes in the structure of tax payments to the budgets of the Murmansk and Vologda regions, where JSC Apatit and JSC PhosAgro-Cherepovets are among the largest taxpayers. Optimisation of production personnel at both sites in connection with the reorganisation is not planned, and all social obligations will be fulfilled as before.
After evaluating the functioning of the merged entity, PhosAgro may consider merging JSC Metakhim with JSC Apatit, thus completing the merger of the Company’s production assets into one legal entity. The transition to a single entity for the Company’s production assets and PJSC PhosAgro is currently not being considered.