Borealis has received a binding offer from Russian fertilizer producer EuroChem to acquire Borealis’ fertilizer, melamine and technical nitrogen business.
The offer values the business at EUR 455 million, according to a release from Borealis.
“Borealis will initiate mandatory information and consultation procedures with employee representatives shortly. The transaction is also subject to certain closing conditions and regulatory approvals, with closing expected for the second half of 2022,” said Borealis in its 3 February statement.
Borealis announced that it was looking to divest its nitrogen business in February 2021. See here.
The largest Borealis fertilizer production facility is in Linz, Austria. Fertilizer raw materials produced here include ammonia, nitric acid and urea as well as NPK and CAN (calcium ammonium nitrate) fertilizers. The CAN is a by-product of its NPK production route.
When announcing the intention to divest, Borealis said the company’s share in fertilizer production sites in the Netherlands and Belgium, through the company Rosier, were not presently being considered within the potential sales process.
The company says it will focus on its core polyolefins business. Borealis is a market leader in various forms of plastic piping.
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