Borealis Confirms Squeeze-Out Offer for Rosier

12.08.2022 - Borealis has confirmed its intention to launch a squeeze-out offer for Belgian fertilizer producer Rosier. It already held 77.5% of Rosier and raised its shareholding to 98.09% through a capital increase late last month.

The Austrian chemical company had originally announced its intention to make the offer at a price of €20 per share on Jun. 10. The transaction is part of a rescue package for fertilizer producer Rosier, which Borealis has part owned since buying out Total’s share in July 2013.

Rosier’s financial difficulties are both a consequence of tough market conditions and a negative impact on its business from the war in Ukraine. It reportedly generated 10% of its sales in Ukraine, while also receiving a fifth of its supplies from Russia and Belarus.

In its 2021 results, released on Feb. 9, Rosier said during the first half of that year, prices for most basic raw materials increased in some cases by up to more than 50%. In the second half, Rosier saw unprecedented price hikes for its main raw materials, especially those produced from natural gas, such as ammonia, ammonium sulfate, phosphates and potassium. Subsequently, sales dropped by 6% in 2021 versus 2020 and margins fell by 29%.

Once Borealis’ takeover is completed, Rosier will be delisted from the Euronext Brussels stock exchange.

Author: Elaine Burridge, Freelance Journalist