Russian EuroChem to acquire Borealis’ nitrogen business for €455m

SINGAPORE (ICIS)–Russia’s EuroChem has submitted a binding offer to acquire the nitrogen business of Austrian polyolefins and fertilizers producer Borealis for €455m.

The business to be acquired includes Borealis’ fertilizer, melamine and technical nitrogen products, the Austrian producer said on Thursday.

“The addition of the Borealis nitrogen business to our portfolio, once approved, will strengthen our foothold considerably in such a key market as Europe,” EuroChem Group CEO Vladimir Rashevskiy said in a separate statement.

EuroChem currently has manufacturing facilities in Russia, Belgium, Kazakhstan, and Lithuania.

With the acquisition, EuroChem would add production assets in Austria, Germany and France, and gain access to comprehensive sales and distribution network utilizing the Danube River.

Borealis has more than 50 distribution points across Europe and around 4m tonnes of products supplied annually in western, central and southeast Europe via the Borealis LAT distribution network, EuroChem said.

The deal, which is still subject to regulatory approvals, is expected to close in the second half of 2022.

“Borealis will initiate mandatory information and consultation procedures with employee representatives shortly,” the Austrian producer said.