BASF to purchase Pronova BioPharma of Norway for €664m
Aims to become world leader in production of omega-3 fatty acids
BASF plans to pay approximately €664m for a Norwegian specialist in the production of omega-3 fatty acids.
The German chemicals giant says it is aiming to become the world’s leading producer of fish-oil derived fatty acids, which are used to treat cardiovascular diseases, with the purchase of Pronova BioPharma, based in Lysaker, Norway.
The Pronova board and management have unanimously recommended that the offer is accepted.
‘The intended acquisition will significantly strengthen our position in the fast growing and highly profitable market for omega-3 fatty acids,’ said Michael Heinz, member of the board of directors of BASF SE and responsible for the Performance Products segment.
Pronova’s active pharmaceutical ingredients are used to treat cardiovascular diseases such as post-myocardial infarction. In nutritional applications, including dietary supplements, there is evidence supporting a broad range of positive health benefits through omega-3 fatty acids, for example, in the areas of cognitive development or heart health, says BASF.
BASF expects to finalise the transaction in the first quarter of 2013.
Earlier this month, BASF said it would use a £2.95m grant from Scottish Enterprise to help increase manufacturing capacity at its facility on the Isle of Lewis, Scotland, potentially delivering 98 new jobs and safeguarding 25 existing jobs in the process. The Lewis site was obtained by BASF following the acquisition of Equateq, a manufacturer of omega-3 fatty acids in May.
