Business Plan EuroChem to Takeover Borealis’ Nitrogen Business

EuroChem intends to acquire Borealis’ nitrogen business for 520 million dollars. If the deal goes through, EuroChem will take over the firm’s five production facilities across Europe as well as its full sales and distribution network.

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Zug/Switzerland – EuroChem Group has entered exclusive negotiations to acquire the nitrogen business of the Borealis group after having submitted a binding offer. Borealis operates fertilizer production plants at the heart of important crop-producing regions in Austria and France. With more than 50 distribution points across Europe and around four million tons of products (including c.0.8 million tons of technical nitrogen solutions and c.0.15 million tons of melamine) supplied annually in Western, Central and South East Europe via the Borealis L.A.T distribution network, Borealis is one of Europe’s leading fertilizer producers.

Borealis is also a market leader in melamine, with its operations in Austria and Germany serving the essential raw material primarily to the woodworking industry. Melamine and technical nitrogen solutions represent important new business lines for EuroChem to expand its nitrogen-based product portfolio in Europe.

“EuroChem is a global leader in the mineral fertilizer industry, with a significant presence in all major markets,” said EuroChem Group CEO Vladimir Rashevskiy. “The addition of the Borealis nitrogen business to our portfolio, once approved, will strengthen our foothold considerably in such a key market as Europe.”

“We are delighted with the results of our negotiations, and look forward to creating opportunities for further growth in the European market together with Borealis’ impressive management team,” Rashevskiy added.

Feeding the Borealis distribution network in France and Central and Eastern Europe, mainly along the Danube River, are a total five production facilities: three in France, and another in each of Germany and Austria. In 2020, the business posted sales of 3.9 million metric tons, with revenues of 1,038 million dollars.

The transaction must clear customary consultation procedures with Borealis’ employee representative bodies and usual regulatory approvals. It is valued at 520 million dollars (enterprise value) and subject to certain closing conditions, with closing foreseen in the second half of 2022.

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