November 29 (SeeNews) - Vienna-based specialty chemicals firm Borealis AG, a majority-owned subsidiary of Austrian oil and gas giant OMV, has agreed to acquire Bulgarian plastics recycling company Integra Plastics for an undisclosed amount, OMV said on Wednesday.
The transaction, which is pending customary regulatory clearances, will bolster Borealis' advanced mechanical recycling portfolio, OMV said in a press release.
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The deal will boost Borealis' recycling capacity by over 20,000 tonnes and is in line with its strategy to speed up the transition to a circular economy by 2030, enabling customers to meet sustainability targets, the buyer noted.
Based in Elin Pelin's industrial area near Sofia, Integra Plastics opened a state-of-the-art advanced mechanical recycling plant in 2019, which allows post-consumer waste to be processed into high quality polyolefin recyclates suitable. The company specialises in the production of low-density polyethylene, high-density polyethylene and polypropylene granules.
The investment in Integra Plastics' recycling plant amounted to 40 million euro ($43.9 million), local media reported at the time.
The company's majority owner is Betainvest, a vehicle of Bulgarian entrepreneur Angel Georgiev, according to the most recent annual report available on the commercial register's website. In 2021, the company generated a net loss of 2.5 million levs ($1.4 million/1.3 million euro) compared with a net loss of 9.85 million levs a year earlier, the report shows.
OMV owns a stake of 75% in Borealis, with Abu Dhabi National Oil Company holding the rest. Borealis, which booked a net profit of 2.1 billion euro in 2022, employs more than 6,000 people and has operations in some 120 countries.
($ = 0.8818 euro)