Polyolefins and fertilizer producer Borealis has completed the divestment of its nitrogen business including fertilizer, melamine and technical nitrogen products. For some time, the Vienna-based company had been looking for a buyer for the agriculture business to concentrate on olefins and polyolefins, including the Borouge joint venture in the United Arab Emirates. In February it announced plans for a sale to Russian-owned, Swiss-based fertilizer producer EuroChem for €455 million but pulled the plug on the deal in March, following Russia’s invasion of Ukraine.

In early June of 2022, Borealis received a binding offer from Agrofert for the acquisition of its nitrogen business. Back then, Borealis said, that the transaction will close in the second half of 2022. Finally, on July 5, 2023, the transaction, valuing the business on an enterprise value basis at €810 million, has been completed.

Agrofert is a Czech-based group active in a number of industries in Central Europe, with activities spanning from chemicals and agriculture to food production. Generating a consolidated turnover of €10 billion in 2022, the group comprises more than 200 companies and employs approximately 31,000 people. Agrofert is also one of the leading European nitrogen fertilizer producers, with manufacturing facilities in Germany, the Czech Republic, and Slovakia.

By adding Borealis’ production assets in Austria, Germany, and France, as well as a comprehensive sales and distribution network, this business combination complements Agrofert’s existing capabilities in serving its customers in the fertilizers and technical nitrogen business across Europe. Additionally, the sale extends Agrofert’s existing portfolio with melamine.

“Agrofert’s acquisition of Borealis‘ nitrogen business, with their long-term commitment to further develop the fertilizer business, is to the best advantage for the security of supply in Austria and Europe, as well as for all impacted employees,” commented Thomas Gangl, Borealis CEO. “Based on this transaction, a strong European company will now evolve, securing stable supply of fertilizers and, as a consequence, with crops and food products for Austria and Europe.

According to the CEO, Borealis will now continue to focus on its core activities of providing innovative and sustainable solutions in the fields of polyolefins and base chemicals and on the transformation towards a circular economy.”