OMV Subsidiary Borealis Declines Offer from Russia’s EuroChem for Fertilizer Business
The planned sale of the Linz-based fertilizer division of OMV chemicals subsidiary Borealis to Russian-Swiss group EuroChem has been canceled. According to a press release, Borealis has decided to reject EuroChem's offer.
Airview of Borealis location in Linz, Austria. / Picture: © Borealis
Borealis, one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics, has decided to decline the binding offer it received from EuroChem on 2 February 2022 for the acquisition of Borealis’ nitrogen business including fertilizer, melamine and technical nitrogen products.
“We have closely assessed the most recent developments around the war in the Ukraine and sanctions that have been put in place,” comments Thomas Gangl, Borealis CEO. “As a consequence, we have decided to decline EuroChem’s offer for the acquisition of Borealis’ nitrogen business including fertilizer, melamine and technical nitrogen products.”
Borealis will now consider various options regarding the future of its nitrogen business.
EuroChem's founder Andrey Melnichenko beneficially held 90% of EuroChem Group AG shares until 9 March 2022, when he resigned as Non-Executive Director of the Board of Directors, and withdrew as the main beneficiary “to ensure EuroChem is able to continue providing millions of people around the world with nutrients for agriculture, helping to underpin global food security”. The resignation came on the same day Melnichenko was included in an EU sanctions list, a move he claimed was "absurd and nonsensical" and had "no justification". Following his resignation and withdrawal as beneficiary of EuroChem, Melnichenko beneficially controlled 0% of its shares, according to Forbes. …
or Log In