• Borealis is a leading European nitrogen fertilizer and melamine producer with 2020 sales of 3.9 million tonnes, domiciled in Austria
• The transaction would see EuroChem assume five production facilities across Europe as well as full sales and distribution network
• Enterprise value is set at EUR 455 million, subject to regulatory approvals and customary purchase price adjustments at closing

Zug, Switzerland, February 3, 2022 – EuroChem Group AG (hereafter “EuroChem” or the “Group”), a leading global fertilizer producer, announces that it 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 tonnes of products (including c.0.8 million tonnes of technical nitrogen solutions and c.0.15 million tonnes 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,” Mr Rashevskiy added. “We are a customer-centric organization that puts workplace safety and sustainability at the core of our business, and I was very encouraged to note that these are common values across both companies.”

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 tonnes, with revenues of EUR 908 million.

The transaction must clear customary consultation procedures with Borealis’ employee representative bodies and usual regulatory approvals. It is valued at EUR 455 million (enterprise value) and subject to certain closing conditions, with closing foreseen in the second half of 2022.

About EuroChem

EuroChem is a leading global fertilizer producer, and one of only three companies worldwide with manufacturing capacity in all three primary nutrient groups: nitrogen, phosphates and potash. A vertically integrated company, EuroChem is expanding its production and distribution capacities in key regions around the world. The company’s growth is primarily driven by significant investment in the modernization of existing, and construction of new, nitrogen and complex fertilizer plants, the ramp-up of two large-scale potash projects, and underpinned by an operational efficiency drive across the full value chain. The Group has key manufacturing facilities in Russia, Belgium, Kazakhstan, and Lithuania, employing more than 27,000 people in 40 countries, and with a product reach of more than 100 countries.

For more information, please visit www.eurochemgroup.com. Any media or analyst enquiries should be directed to the appropriate EuroChem Group contact, as listed below:

INVESTORS

Oxana Kovalenko
Head of Investor Relations
EuroChem Group AG
oxana.kovalenko@eurochemgroup.com

MEDIA

David Nowak
Deputy Head of Communications
EuroChem Group AG
david.nowak@eurochemgroup.com