Agropolychim is waiting for the green light from the CPC for the deal with Ecofol

One of Bulgaria's leading mineral fertilizer manufacturers, Agropolychim AD, wants to acquire 50% of its key trading partner, Ecofol AD. A notification of the upcoming concentration has been submitted to the Commission on Protection of Competition (CPC), which is already reviewing the deal. It was officially announced by the fertilizer plant back in June.

According to the notification, the deal involves three parties: Agropolychim (a manufacturer of standard fertilizers), Ecofol (manufacturer of treated and foliar fertilizers) and Victor Rombaut, who owns a majority stake in the agricultural company Agro Tsar Petrov AD and is also the son of Philippe Rombaut, Chairman of the Board of Directors of Agropolychim and a 50% shareholder in it.

Agro Tsar Petrovo is a producer of agricultural crops such as sunflower, wheat, rapeseed, corn, coriander, and white thistle. A check in the Commercial Register shows that the father owns 25% of the company and was also its proxy in the past. Now his son manages it and owns 75%.

The long-standing trading partner, Ecofol, is an independent company owned by Radoslav Ivanov Mihaylov and Boryana Ivanova Mihaylova.

The Commission for Protection of Competition (CPC) will examine the potential impact of the transaction on the following markets:

• production and distribution of various types of fertilizers (nitrogen, phosphorus, complex, treated, and foliar);
• production of the AdBlue additive;
• production of renewable agricultural crops.

Any interested party has the right to submit a written opinion to the CPC, which will issue a final decision after a comprehensive assessment.

Agropolychim's strategy

According to an official statement by Agropolychim on June 23, the acquisition is a natural continuation of the successful partnership with Ecofol, which began in 2022. The main objective of the transaction is to accelerate the development of innovative solutions for Bulgarian agriculture.

The merger of the two companies aims to create synergy between Agropolychim's expertise in soil fertilization and Ecofol's experience in foliar fertilization. This will enable farmers to have access to comprehensive solutions for precision fertilization.

The two companies also plan to join forces in the field of training and consulting for agricultural producers. Operationally, the acquisition will enable Ecofol to expand its production capacity by utilizing Agropolychim's industrial base in Devnya, which will improve logistics and reduce product costs.

Translated with DeepL.