Russian mineral fertilizer producer Acron will not bid for a 20 percent state stake in apatite concentrate maker Apatit due to strategy changes, the company said in a statement on Friday.
“Even this year we will receive apatite concentrate from our Oleniy Ruchey mining processing plant, so this stake is no longer a strategic interest for us. This is why we decided to change the priorities and focus our financial efforts on other sectors, particularly on our own projects,” Acron Acting President Alexander Popov was quoted in a statement as saying.
BNP Paribas, which has been mandated by the government to arrange the stake sale, initially assessed it at 10.5 billion rubles ($350 million).
Acron also said that it had settled the dispute with Russian fertilizer holding company PhosAgro, which currently owns more than 57.57 percent of the voting shares of Apatit, on apatite concentrate supplies. The parties agreed on Apatit’s purchase of apatite-nepheline ore from the Oleniy Ruchey deposit.
Russian fertilizer maker Uralchem, PhosAgro as well as the Renova group of companies and Trust National Bank are among other bidders for the Apatit state stake. Apatit produces 75 percent of apatite concentrate production in Russia.