Mark Garrett and Mohamed Ghanem
Borealis-First Energy JV buys key stake in Bulgarian firm
Manama, December 24, 2013
Bahrain-based First Energy Bank and Borealis, the second largest producer of polyethylene and polypropylene in Europe have jointly bought 20.3 per cent stake in Neochim AD, Bulgaria's leading producer and distributor of fertilisers.
For the acquisition, Borealis and First Energy Bank formed a new joint venture in Bulgaria 'Feboran AD'.
Neochim is a publicly listed company under the Public Offering of Securities Act, and operates one ammonia plant, two nitric acid plants and an ammonium nitrate plant in Dimitrovgrad in southern Bulgaria.
“This investment is again in line with our strategy to grow our fertilizer business and to maintain our number one position in Central and Eastern Europe,” said Mark Garrett, Borealis chief executive.
“First Energy Bank is a co-investor with sound financial credentials. This cooperation allows us to further strengthen our position in the growing Bulgarian market at a time when Borealis is investing into the integration of the recent acquisition GPN SA, now renamed Borealis Chimie SAS, in France.”
“We believe that fertilizers in Europe offer attractive business opportunities with further potential for growth particularly in Central and Eastern Europe,” explained Markku Korvenranta, Borealis executive vice president Base Chemicals.
“Neochim is a well-managed dedicated fertilizer company with competitive plants and an advantageous logistics position. Borealis L.A.T will be distributing part of the production through its distribution network.”
“First Energy Bank welcomes the co-operation with Borealis in the joint investment in Neochim,” said Mohamed Ghanem, chief executive officer, First Energy Bank.
“This investment extends our investment portfolio both geographically into Europe and into a fast-growing market. Furthermore, it reinforces our strategy of participating in the energy sector and investing in a well established petrochemical entity in Bulgaria,” he added. – TradeArabia News Service
More Industry, Logistics & Shipping Stories
- DNV to re-certifiy Drydocks World services
- Amphibious boats make global debut in Dubai
- Qatar sets up mixed business incubator
- Non-oil sectors ‘biggest contributors to UAE economy’
- Alba educates customers on best practices
- Spinneys to set up distribution centre at Kizad
- Maritime courses draw more trainees
- Dow to showcase at Dubai coatings expo
- UAE aluminium sector backs Syria refugees
- Asry in big vessel repair milestone
- Flare, Jordan form parent company ‘Aereon’
- Drydocks delivers second MCV for US
- ASIS launches amphibious leisure boat
- Taskforce sought to develop Saudi downstream sector
- DP World launches $200m India project
- RAK 'exploring' ceramics unit stake sale
- Mideast carriers top global air freight growth
- DMCA launches maritime solution apps
- Saudi plans oil-to-chemicals plant at Yanbu
- Sabic gets four bids for JV with Mitsubishi Rayon
- Pentair, IDC launch industrial services JV
- Major maritime conference to be held in Dubai
- GPIC wins key IFA certification
- Gulf rules must aid e-commerce: Aramex
- Gulftainer expands 2013 ops by 50pc
- DMCA to take part in Dubai boat show
- Al Namal to launch eco-friendly chillers
- Abu Dhabi city ports to receive facelift
- Kuwait Styrene posts $180m net profit
- Drydocks set for key energy event