Major Russian companies Uralkali and Uralchem have agreed to take a controlling share in Brazil’s Fertilizantes Heringer, currently under bankruptcy protection.

One of Brazil’s largest fertilizer companies, Fertilizantes Heringer said the two Russian firms would buy shares for 2 reais each, resulting in a capital increase of up to $115 million.

The Russian companies signed a letter of intent on Sep. 21 and the transaction is now subject to approvals, including regulatory clearance. Fertilizantes Heringer added that signing of definitive documents is subject to negotiation of agreements and other documents on terms and conditions acceptable to both parties.

Uralkali produces and exports potassium-based fertilizers while Uralchem is a group of companies that produces and exports nitrogen and complex fertilizers.

Earlier this year, the Brazilian fertilizer company decided to close several of its plants and distribution centers as part of a restructuring plan to reduce debt. Before the closures, the company operated 16 plants using imported feedstock, with capacity to move 6.2 million t/y of fertilizer, as well as one sulfuric acid facility.