November 29, 2022

Stepan Announces Increases

“Effective January 1, 2023, or as contracts allow, Stepan will increase the price for STEPANPOL® and TERATE® Rigid Polyester Polyols used in the Americas by $0.09 per pound. This increase is necessary due to the significant escalation in feedstock, transportation, and operating costs in North America.

November 29, 2022

Stepan Announces Increases

“Effective January 1, 2023, or as contracts allow, Stepan will increase the price for STEPANPOL® and TERATE® Rigid Polyester Polyols used in the Americas by $0.09 per pound. This increase is necessary due to the significant escalation in feedstock, transportation, and operating costs in North America.

November 26, 2022

Wow

Brenntag Is Said to Explore Takeover of Chemicals Rival Univar

Michelle F. Davis, Kiel Porter and Aaron Kirchfeld, Bloomberg News

(Bloomberg) — Germany’s Brenntag SE is exploring a potential acquisition of US rival Univar Solutions Inc. that would cement its position as the world’s biggest chemical distributor and create a company with more than $30 billion in sales, people familiar with the matter said.

The two firms have held preliminary talks about the feasibility of a combination, the people said, asking not to be identified because the matter is private. If discussions go smoothly, Brenntag and Univar may decide as soon as the next couple months whether to proceed with a transaction, the people said.

Brenntag has declined 14% this year, valuing the Essen-based firm at €10.6 billion ($11 billion). Downers Grove, Illinois-based Univar is up more than 9%, giving it a market capitalization of more than $5 billion. 

Deliberations are at a preliminary stage and there’s no certainty they will lead to a transaction, the people said. Representatives for Brenntag and Univar couldn’t immediately comment.

The potential tie-up would rank as a top three transaction in the chemical industry this year and mark a late bright spot for big cross-border dealmaking. Global mergers and acquisitions are down almost 30% this year to $2.4 trillion, according to data compiled by Bloomberg, hurt by economic headwinds and difficult financing markets. 

While Brenntag is a serial acquirer of smaller assets, a Univar takeover would mark its largest purchase by far and be a bold move for Chief Executive Officer Christian Kohlpaintner. The German company unveiled a new growth plan earlier this month to “shape the future of its industry” including organic re-investments and “value creating M&A activities.”

Univar is no stranger to dealmaking itself. It merged with rival Nexeo Solutions Inc. in 2018 and then sold its plastics business in 2019. David Jukes has served as Univar’s CEO since 2018.

A combination would create an opportunity to boost growth and cut costs, but could also face tough antitrust reviews as national governments more closely scrutinize sector tie-ups.

Brenntag reported $20.3 billion of sales over the trailing 12 months, compared with $11.4 billion at Univar, according to data compiled by Bloomberg. The German company is the global market leader in chemical and ingredients distribution with over 17,000 employees in 78 companies, according to its website. 

Univar boasts one of the industry’s largest private transportation fleets as well as a sales force and logistics team that helps connect chemical makers and buyers across sectors.

–With assistance from Eyk Henning and Dinesh Nair.

©2022 Bloomberg L.P.

https://www.bnnbloomberg.ca/brenntag-is-said-to-explore-takeover-of-chemicals-rival-univar-1.1851291

November 26, 2022

Wow

Brenntag Is Said to Explore Takeover of Chemicals Rival Univar

Michelle F. Davis, Kiel Porter and Aaron Kirchfeld, Bloomberg News

(Bloomberg) — Germany’s Brenntag SE is exploring a potential acquisition of US rival Univar Solutions Inc. that would cement its position as the world’s biggest chemical distributor and create a company with more than $30 billion in sales, people familiar with the matter said.

The two firms have held preliminary talks about the feasibility of a combination, the people said, asking not to be identified because the matter is private. If discussions go smoothly, Brenntag and Univar may decide as soon as the next couple months whether to proceed with a transaction, the people said.

Brenntag has declined 14% this year, valuing the Essen-based firm at €10.6 billion ($11 billion). Downers Grove, Illinois-based Univar is up more than 9%, giving it a market capitalization of more than $5 billion. 

Deliberations are at a preliminary stage and there’s no certainty they will lead to a transaction, the people said. Representatives for Brenntag and Univar couldn’t immediately comment.

The potential tie-up would rank as a top three transaction in the chemical industry this year and mark a late bright spot for big cross-border dealmaking. Global mergers and acquisitions are down almost 30% this year to $2.4 trillion, according to data compiled by Bloomberg, hurt by economic headwinds and difficult financing markets. 

While Brenntag is a serial acquirer of smaller assets, a Univar takeover would mark its largest purchase by far and be a bold move for Chief Executive Officer Christian Kohlpaintner. The German company unveiled a new growth plan earlier this month to “shape the future of its industry” including organic re-investments and “value creating M&A activities.”

Univar is no stranger to dealmaking itself. It merged with rival Nexeo Solutions Inc. in 2018 and then sold its plastics business in 2019. David Jukes has served as Univar’s CEO since 2018.

A combination would create an opportunity to boost growth and cut costs, but could also face tough antitrust reviews as national governments more closely scrutinize sector tie-ups.

Brenntag reported $20.3 billion of sales over the trailing 12 months, compared with $11.4 billion at Univar, according to data compiled by Bloomberg. The German company is the global market leader in chemical and ingredients distribution with over 17,000 employees in 78 companies, according to its website. 

Univar boasts one of the industry’s largest private transportation fleets as well as a sales force and logistics team that helps connect chemical makers and buyers across sectors.

–With assistance from Eyk Henning and Dinesh Nair.

©2022 Bloomberg L.P.

https://www.bnnbloomberg.ca/brenntag-is-said-to-explore-takeover-of-chemicals-rival-univar-1.1851291

November 17, 2022

LyondellBasell Ethylene to Propylene

LyondellBasell Evaluates Propylene Expansion Project

HOUSTON, Nov. 17, 2022 /PRNewswire/ — LyondellBasell (NYSE: LYB) today announced it is evaluating the expansion of its propylene production capacity at its Channelview Complex near Houston, TX. The potential expansion would involve building a new propylene facility using LyondellBasell’s existing technology to convert ethylene into propylene for use in the production of polypropylene and propylene oxide. The related product lines are used to make everyday items such as flexible foam for mattresses, cosmetic packaging, electrical covering for 5G network infrastructure, plastic wrap for food packaging, medical syringes, vehicle bumpers, furniture upholstery and pipe for home plumbing, to name a few.

“In addition to the lower carbon emissions than competing technologies, we believe the project has more favorable economics compared to other production methods,” said Ken Lane, Executive Vice President Global Olefins & Polyolefins. “The products offered through this investment will be an important element to helping our value chain partners achieve their long-term sustainability ambitions. Additionally, this upstream investment would allow us to be less dependent on propylene market supply and demand, providing us with the opportunity to serve growing customer needs better.”

A final investment decision on this 400 kiloton propylene expansion project is expected towards the end of next year. The project would have an annual capacity of 950 million pounds per year. It would increase the company’s propylene capacity at the Channelview Complex by more than 35 percent and would create approximately 10-15 new jobs.

https://lyondellbasell.mediaroom.com/index.php?s=43&item=1423