Report

Fertilizer Industry – A Perspective on Famous Mergers in the Fertilizer Industry

• M&A is a useful strategy for fertilizer enterprises to expand their scale, improve production efficiency and competitiveness in the market.
• Notably, the type of fertilizer a company produces significantly impacts the execution price of an M&A transaction, as determined by the EV/EBITDA ratio. Companies producing Potash fertilizers are typically valued at the highest average EV/EBITDA multiples, while those producing Phosphate and NPK fertilizers have lower transaction value/EBITDA ratios, with Urea fertilizer producers having the lowest valuations
• Comparing the financial ratio of merged enterprises in the world, we found that the net profit margin and gross margin of the Potassium fertilizer business enterprise were the highest, followed by NPK and Urea fertilizers and finally the phosphorus fertilizer business.
Provider
Viet Dragon Securities
Viet Dragon Securities

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Analysts
Hien Le

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