ADNOC-aligned Austrian chemicals company Borealis gets binding offer for nitrogen unit from Agrofert

Dubai: The Austrian chemicals company Borealis – in which Abu Dhabi’s ADNOC owns 25 per cent stake – has received an offer to sell its nitrogen business. The offer sets the Borealis business unit at an enterprise value of 810 million euro.

The offer was made by Agrofert, which is based out of the Czech Republic and has interests spanning multiple sectors, including chemicals, agriculture and food production. Last year, it generated revenues of 7.5 billion euros, with the group overseeing more than 200 companies within its fold.

It was in April that ADNOC bought off the 25 per cent stake in Borealis from Mubadala.

The Borealis nitrogen operations include fertilizers, melamine and ‘technical nitrogen products. “Borealis will initiate mandatory information and consultation procedures with employee representatives shortly,” said the company in a statement. “The transaction is subject to certain closing conditions and regulatory approvals, with closing expected for the second-half of 2022.”

If the deal does go ahead, Borealis will then focus on core operations spanning polyolefins and base chemicals. Borealis and ADNOC also own and operate the Borouge petrochemicals company in Abu Dhabi, which has just completed a $2 billion IPO and will list on ADX today (June 3). Post-IPO, Borealis owns 36 per cent in Borouge, which operates out of Ruwai.