BASF Pushes Further Into Omega-3 Market

BASF has agreed to purchase Pronova BioPharma, a Norwegian producer of omega-3 fatty acids from fish oil, for $850 million. BASF says it has secured commitments from venture capital shareholders for approximately 60% of Pronova. The company’s omega-3-based compounds are used in nutritional supplements and in an FDA-approved drug for cardiovascular disease. Last year Pronova had concentrated omega-3 production capacity of 2,500 metric tons per year and sales of about $300 million. “We want to combine the global market reach and experience of BASF with the know-how of Pronova in omega-3 fatty acids,” BASF says. BASF, which is also developing plant-derived omega-3 fatty acids, purchased a small Scottish omega-3 producer in May. Also in May, DSM agreed to acquire the omega-3 company Ocean Nutrition Canada for $530 million.