Indorama Ventures (Bangkok, Thailand) has entered into an agreement to acquire M&G Polimeros Brazil (Ipojuca, Brazil). Financial details of the transaction were not disclosed.
The transaction is expected to be completed in the second quarter of 2018, subject to regulatory approvals. M&G’s parent, Mossi Ghisolfi Group (Tortona, Italy), filed for bankruptcy protection last October.
Indorama states that the plant is the largest polyethylene terephthalate (PET) facility in Brazil, with capacity of 550,000 metric tons/year. This plant benefits from virtual integration with a manufacturer of purified terephthalic acid, a key feedstock to PET, adds Indorama. Indorama projects immediate incremental revenues and cost synergies, driven by a substantial volume increase and potential value add through backward integration.
South America is an important emerging market with domestic demand for PET growing at around 5%. Today’s per capita consumption of PET is comparatively low at 2.8 kg and has great potential for growth. Brazil also has strong underlying fundamentals, supported by government policies to stimulate economic growth and strengthen the domestic market, according to Indorama.
“Indorama Ventures now has unrivalled scale and global reach, being present in five continents with a uniquely balanced and integrated business model,” says Indorama CEO Aloke Lohia.
Indorama Ventures net profit for the fourth quarter was 59% higher year over year (YOY) at $117 million, EBITDA increased 25% to $256 million, and sales were 16% higher at $2.14 billion. PET revenue grew 12% in the fourth quarter.
By Kartik Kohli
Source: Chemical Week
The European Union said Monday that it has approved Agrofert Group’s acquisition of Borealis AG’s nitrogen business after concluding that the deal wouldn’t raise competition concerns. Agrofert is a Czech conglomerate, while Austrian chemical and fertilizer company Borealis is 75%-owned by OMV AG with the remaining 25% held by Abu Dhabi National Oil Co.
LyondellBasell Industries N.V. and Mepol Group announced they have entered into a definitive agreement for LyondellBasell to acquire Mepol Group, a manufacturer of recycled, high-performing technical compounds located in Italy and Poland.
Univar Solutions Inc and Apollo announced that funds managed by affiliates of Apollo have entered into a definitive merger agreement to acquire the Company in an all-cash transaction that values the Company at an enterprise value of approximately $8.1 billion.