Updated: 07/05/2023 16:36 Issued: 07/05/2023 15:02
Prague – Holding Agrofert completed the takeover of the nitrogen processing division of the Austrian chemical company Borealis, which includes the production of fertilizers, melamine and technical nitrogen products. The transaction for 810 million euros (over CZK 19.2 billion) was completed today. Agrofert spokesman Pavel Heřmanský informed about this in a press release. Thanks to the purchase of the division, the holding will expand its activities in Austria, Germany and France and will be able to use the distribution network of Borealis along the Danube.
Until February 2017, the Agrofert concern was owned by former Minister of Finance and former Prime Minister Andrej Babiš (ANO), who put his shares into trust funds due to the Conflict of Interest Act. Agrofert employs over 30,000 people, of which 20,775 are in the Czech Republic. Last year, the group’s profit increased by 124 percent to 12.97 billion crowns. Sales increased by 33 percent to 245 billion crowns.
The holding includes, among others, the chemical companies Precolor, Deza, Fatra and Synthesia. According to the Chairman of the Board of Directors, Zdenek Průš, last year the growth of the entire group was driven by chemical factories, mainly abroad.
The deputy chairman of the board of the Agrofert holding, Petr Cingr, stated that the production of fertilizers is one of the key segments for Agrofert. According to him, the group will roughly double its production capacity. “At the same time, we will enter new markets, especially France, the Benelux countries, Bulgaria and Serbia,” he added.
He announced the takeover of the Agrofert division already last year. Borealis falls under the OMV group. The company originally wanted to sell the fertilizer division for 455 million euros to the Russian concern EuroChem. However, it fell out of this agreement due to Western sanctions against Russia. The European Commission approved the sale of the Agrofert division in March this year. It stated that the transaction would not in any way distort competition in the European Economic Area. As the last step then, it remained to obtain the approval of the authorities in France, which the company has already obtained.
Borealis CEO Thomas Gangl said that the acquisition of the Agrofertem division is beneficial for the security of supply in Austria and Europe. “A strong European society will emerge that will ensure a stable supply of fertilizers and, as a result, of crops and food products,” he added.
The Agrofert Group celebrated its 30th anniversary this year. She stated that over the past ten years, she has invested over 106 billion crowns in the development and modernization of her companies. The buyout of the Borealis division is its largest acquisition in history. Holding previously said the division has roughly 2,000 employees. On Tuesday, Agrofert added to its economic results that it has already prepared other acquisitions in agriculture.
Austria agricultural chemistry Agrofert Borealis
2023-07-05 13:02:00
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