Azoty to borrow funds for acquisitions

Poland's fertilizer producer Grupa Azoty will try to acquire loans for acquisitions abroad. The company believes it can finance its takeover projects with PLN 2 billion in debt. The amount is equal to half of annual EBITDA for Grupa Azoty. Azoty are currently the second largest fertilizer producer in Europe, after Norwegian Yara. In the upcoming years, the company wants to exceed the production of competitors BASF and Fertiberia. On the other hand, a sector-wide decline in grain prices has dampened fertilizer sales. Also, Azoty needs to invest PLN 7 billion on infrastructure modernization in the next six years. The group was formed by the State Treasury, fusing smaller producers into a conglomerate, as an alternative to the purchase of Azoty by Acron, a Russian competitor.