The Lower Austrian Farmers’ Association, with its Chairman and Deputy Governor Stephan Pernkopf, are among those strongly opposed to the sale of the Borealis Nitrogen business (GM June 3, p. 1). At a press conference on Sept. 14, the association made a strong statement in the fight against what they see as the highly controversial deal.
Pernkopf argued farmers urgently need fertilizers for the production of food, and asked how state-owned holding company Österreichische Beteiligungs AG (ÖBAG) intends to rule out a threat to the security of supply and empty shelves.
However, on Sept. 14 ÖBAGdispensed with the farmers objections, saying their arguments “were not plausible,” according to a Reuters report, adding that in its view, the buyer Czech Republic’s chemicals and fertilizer company Agrofert had given a location guarantee for the Austrian city of Linz.
Austrian oil and gas group OMV AG is selling the Nitrogen business of its majority-owned (75%) Borealis AG subsidiary to Agrofert. It announced in early June that it had received a binding offer from Agrofert for the acquisition of the Nitrogen business, which includes fertilizer, melamine, and technical nitrogen products (GM June 3, p. 1). The offer values the business on an enterprise value basis at €810 million (approximately $809 million at current exchange rates).