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