EuroChem buys Austrian nitrogen fertilizer producer for €455m
EuroChem Group, a global mineral fertilizer producer, has started negotiations with the Austrian company Borealis on the purchase of the nitrogen business.
About it writes the edition ElDala.
As a result of EuroChem's operation, five manufacturing plants in Europe, as well as the entire sales and distribution network, will take over.
“The value of the enterprise is set at €455 million. The agreement is subject to regulatory approval and related price adjustments at the time of closing,” the statement said.
According to the report, the completion of the agreement is expected in the second half of 2022.
The publication writes that Borealis owns fertilizer plants in the center of important crop-growing regions in Austria and France. With more than 50 distribution centers throughout Europe and annually delivering about 4 million tons of products (including about 0.8 million tons of liquid technical nitrogen and about 0.15 million tons of melamine) to Western, Central and South-Eastern Europe through a distribution network Borealis lat. The company is one of the leading fertilizer producers in Europe.
It is noted that Borealis is also a market leader in melamine, its enterprises in Austria and Germany supply the necessary raw materials mainly for the woodworking industry. Melamine and liquid industrial nitrogen are important new areas for EuroChem to expand its nitrogen product portfolio in Europe.
“The addition of the Borealis nitrogen business to our portfolio, once approved, will significantly strengthen our position in such a key market as Europe,” said Vladimir Rashevsky, EuroChem Group CEO.
According to the announcement, Borealis' distribution network in France, Central and Eastern Europe, mainly along the Danube River, includes five manufacturing plants: three in France and one each in Germany and Austria. In 2020, sales amounted to 3.9 million tons, and revenue - €908 million.
The agreement is subject to standard consultation procedures with Borealis employee representatives and normal regulatory approvals.
Recall that Russia is introducing a temporary ban on the export of ammonium nitrate from February 2 to April 1, 2022 inclusive.