Borealis declines offer from Russia’s EuroChem for fertilizer business

LONDON (ICIS)–Austrian polyolefins and fertilizers producer Borealis has declined an acquisition offer from Russia’s EuroChem for its nitrogen business including fertilizer, melamine and technical nitrogen products.

This comes as the West has ramped up sanctions on Russia after the invasion of Ukraine.

EuroChem had made the €455m acquisition offer on 2 February.

“We have closely assessed the most recent developments around the war in the Ukraine and sanctions that have been put in place. As a consequence, we have decided to decline EuroChem’s offer,” said Borealis CEO Thomas Gangl.

Borealis will now consider various options regarding the future of its nitrogen business.

Borealis has more than 50 distribution points across Austria, Germany and France, and supplies around 4m tonnes of products annually in western, central and southeast Europe.

Thumbnail picture: Borealis’ fertilizer plant in Ottmarsheim France (Source: Borealis)