Mergers & Acquisitions
September 18, 2020
Apollo Looking at Covestro
Apollo Said to Weigh Deal for $10 Billion Plastics Firm Covestro
Ed Hammond, Eyk Henning and Dinesh Nair, Bloomberg News
- (Bloomberg) — Apollo Global Management Inc., the buyout firm led by billionaire Leon Black, is exploring a takeover of German plastics maker Covestro AG, according to people with knowledge of the matter.
The New York-based investment firm contacted Covestro in recent weeks, said the people, who asked not to be identified as the information is private.
Covestro was spun out of the drugmaker Bayer AG in an initial public offering in October 2015. While the company’s shares have risen 68% since then, they have more than halved in price from a high in early 2018, giving it a market value of 8.2 billion euros ($9.7 billion).
Deliberations are at an early stage, and there’s no certainty they will result in a transaction, the people said. A representative for Apollo couldn’t immediately comment. A representative for Covestro declined to comment.
Apollo has broad experience in the plastics industry. Its prior investment in plastics-maker LyondellBasell Industries NV is still held up as a textbook model for a start-to-finish private equity transaction. Last year, it unsuccessfully targeted plastic-packaging maker RPC Group Plc.
Buying Covestro would mean the private equity firm once again enters highly-competitive markets like polycarbonates, used widely in the building and automotive industries. Leverkusen-based Covestro also manufacturers the more technically-challenging methylene diphenyl diisocyanate, or MDI, used to make polyurethanes for insulation. Its competitors include Huntsman Corp.
September 18, 2020
Apollo Looking at Covestro
Apollo Said to Weigh Deal for $10 Billion Plastics Firm Covestro
Ed Hammond, Eyk Henning and Dinesh Nair, Bloomberg News
- (Bloomberg) — Apollo Global Management Inc., the buyout firm led by billionaire Leon Black, is exploring a takeover of German plastics maker Covestro AG, according to people with knowledge of the matter.
The New York-based investment firm contacted Covestro in recent weeks, said the people, who asked not to be identified as the information is private.
Covestro was spun out of the drugmaker Bayer AG in an initial public offering in October 2015. While the company’s shares have risen 68% since then, they have more than halved in price from a high in early 2018, giving it a market value of 8.2 billion euros ($9.7 billion).
Deliberations are at an early stage, and there’s no certainty they will result in a transaction, the people said. A representative for Apollo couldn’t immediately comment. A representative for Covestro declined to comment.
Apollo has broad experience in the plastics industry. Its prior investment in plastics-maker LyondellBasell Industries NV is still held up as a textbook model for a start-to-finish private equity transaction. Last year, it unsuccessfully targeted plastic-packaging maker RPC Group Plc.
Buying Covestro would mean the private equity firm once again enters highly-competitive markets like polycarbonates, used widely in the building and automotive industries. Leverkusen-based Covestro also manufacturers the more technically-challenging methylene diphenyl diisocyanate, or MDI, used to make polyurethanes for insulation. Its competitors include Huntsman Corp.
August 28, 2020
Huntsman Takes Loss Divesting TiO2 Stake
Remember when ICI convinced Huntsman to buy the TiO2 business and the Wilton cracker in order to obtain the urethanes business back in 1999? So this divestiture finalizes the total change of Huntsman from a commodity polystyrene business to today’s entity that is now about 60% urethanes . . . A throwback article from the original sale is attached at the bottom.
Huntsman Agrees to Sell its Remaining Interest in Venator Materials PLC
Download as PDF August 28, 2020 5:16pm EDT
THE WOODLANDS, Texas, Aug. 28, 2020 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) announced today that it has entered into a definitive agreement with funds advised by SK Capital Partners, LP to sell approximately 42.5 million of the shares it holds in Venator Materials PLC for a cash purchase price of approximately $100 million, including a 30-month option for the sale of the remaining approximate 9.5 million shares it holds at $2.15 per share. The transaction is subject to regulatory approvals and is expected to close near year-end.
Together with estimated cash tax savings of approximately $150 million anticipated by offsetting the capital loss on the sale of Venator shares against the capital gain realized on the sale of our chemical intermediates and surfactants businesses that closed this year in January, we expect to secure an aggregate total benefit of approximately $250 million in cash near year end.
Peter Huntsman, Chairman, President and CEO, further commented, “I am pleased to have reached an agreement to sell our remaining interest in Venator to SK Capital. We enjoy an ongoing relationship with SK Capital and their co-founder Barry Siadat. They are a great owner and operator of businesses and we are pleased for them to acquire Huntsman’s stake in Venator, a world class functional and specialty TiO2 business. The proceeds to be received will further bolster our balance sheet and only enhance our flexibility for further growth.“
News | May 4, 1999
ICI Divests Urethanes, Titanium Dioxide, Petrochemicals to Huntsman; Refinishing, Industrial Coatings to PPG
Imperial Chemical Industries (ICI, London, UK) continues to divest commodity chemicals in order to concentrate on specialty products. Its latest actions include the £1.7 billion sale of polyurethanes, titanium dioxide and selected petrochemicals businesses to Huntsman Chemical Corp. (Salt Lake City, UT). It will also sell most of its global automotive refinishing and industrial coatings units to PPG Industries Inc. (Pittsburgh, PA) for £425 million.
The first transaction includes polyurethanes, titanium dioxide, and paraxylene. It nearly doubles the size of Huntsman, North America’s largest privately owned chemical company, to more than $7.5 billion. The urethanes and titanium dioxide businesses both have solid technology positions and major global markets.
A German automotive refinisher repairs a car using a PPG waterborne system designed to reduce emissions to comply with increasingly stringent environmental regulations. The purchase of ICI’s global automotive refinish and industrial coatings operations augments PPG’s already-strong franchise in this field.
The deal suddenly makes Huntsman a major presence in 11 countries. It also increases Huntsman capacity by 8.7 billion lb/y, to more than 28 billion lb/y, and adds 7000 to its payroll, bringing it to 16,000. The companies expect to close the deal this summer. Huntsman also says it is interested in purchasing ICI’s acrylics business, which is also up for sale.
The purchase involves three segments:
- Polyurethane: ICI operates facilities in Wilton, UK; Rozenburg, the Netherlands; and Geismar, LA; with an aggregate net asset value of £523 million. Total capacity is just over 1 billion lb/y, mostly in MDI-based materials though ICI also manufactures some TDI-based materials as well as polyols. It has 50 sales/representative offices worldwide. In 1998, the business achieved a trading profit (after corporate charges) of £90 million on sales of £816 million.
- Titanium dioxide: ICI’s Tioxide titanium dioxide business has manufacturing sites in Canada, France, Italy, Spain, United Kingdom, and Malaysia, and joint ventures in South Africa and the United States. Its total nameplate capacity approaches 1.3 billion lb/yr with an asset value of £661 million. Trading profits were £58 million on sales of £574 million.
- Petrochemicals: Huntsman will purchase ICI’s aromatics business (primarily benzene and paraxylene, which is used in polyester and polyurethane production) and ICI’s share of olefins production (chiefly ethylene and propylene for polymers) from the cracker at Wilton, Teeside. The assets are valued at £96 million. The business lost £27 million on sales of £659 million in 1998.
Huntsman will acquire the businesses by forming a new company, Huntsman ICI Holdings (HICI) in partnership with ICI. HICI will include Huntsman’s US propylene oxide business, which earned $79 million on $339 million sales in 1998. ICI will retain a £300 million investment in the new business for a minimum of three years. It will use the remaining £1.4 billion from the transaction to reduce debt incurred with its £8 billion purchase of Unilever’s specialty chemical business in 1997.
https://www.chemicalonline.com/doc/ici-divests-urethanes-titanium-dioxide-petroc-0001
August 28, 2020
Huntsman Takes Loss Divesting TiO2 Stake
Remember when ICI convinced Huntsman to buy the TiO2 business and the Wilton cracker in order to obtain the urethanes business back in 1999? So this divestiture finalizes the total change of Huntsman from a commodity polystyrene business to today’s entity that is now about 60% urethanes . . . A throwback article from the original sale is attached at the bottom.
Huntsman Agrees to Sell its Remaining Interest in Venator Materials PLC
Download as PDF August 28, 2020 5:16pm EDT
THE WOODLANDS, Texas, Aug. 28, 2020 /PRNewswire/ — Huntsman Corporation (NYSE: HUN) announced today that it has entered into a definitive agreement with funds advised by SK Capital Partners, LP to sell approximately 42.5 million of the shares it holds in Venator Materials PLC for a cash purchase price of approximately $100 million, including a 30-month option for the sale of the remaining approximate 9.5 million shares it holds at $2.15 per share. The transaction is subject to regulatory approvals and is expected to close near year-end.
Together with estimated cash tax savings of approximately $150 million anticipated by offsetting the capital loss on the sale of Venator shares against the capital gain realized on the sale of our chemical intermediates and surfactants businesses that closed this year in January, we expect to secure an aggregate total benefit of approximately $250 million in cash near year end.
Peter Huntsman, Chairman, President and CEO, further commented, “I am pleased to have reached an agreement to sell our remaining interest in Venator to SK Capital. We enjoy an ongoing relationship with SK Capital and their co-founder Barry Siadat. They are a great owner and operator of businesses and we are pleased for them to acquire Huntsman’s stake in Venator, a world class functional and specialty TiO2 business. The proceeds to be received will further bolster our balance sheet and only enhance our flexibility for further growth.“
News | May 4, 1999
ICI Divests Urethanes, Titanium Dioxide, Petrochemicals to Huntsman; Refinishing, Industrial Coatings to PPG
Imperial Chemical Industries (ICI, London, UK) continues to divest commodity chemicals in order to concentrate on specialty products. Its latest actions include the £1.7 billion sale of polyurethanes, titanium dioxide and selected petrochemicals businesses to Huntsman Chemical Corp. (Salt Lake City, UT). It will also sell most of its global automotive refinishing and industrial coatings units to PPG Industries Inc. (Pittsburgh, PA) for £425 million.
The first transaction includes polyurethanes, titanium dioxide, and paraxylene. It nearly doubles the size of Huntsman, North America’s largest privately owned chemical company, to more than $7.5 billion. The urethanes and titanium dioxide businesses both have solid technology positions and major global markets.
A German automotive refinisher repairs a car using a PPG waterborne system designed to reduce emissions to comply with increasingly stringent environmental regulations. The purchase of ICI’s global automotive refinish and industrial coatings operations augments PPG’s already-strong franchise in this field.
The deal suddenly makes Huntsman a major presence in 11 countries. It also increases Huntsman capacity by 8.7 billion lb/y, to more than 28 billion lb/y, and adds 7000 to its payroll, bringing it to 16,000. The companies expect to close the deal this summer. Huntsman also says it is interested in purchasing ICI’s acrylics business, which is also up for sale.
The purchase involves three segments:
- Polyurethane: ICI operates facilities in Wilton, UK; Rozenburg, the Netherlands; and Geismar, LA; with an aggregate net asset value of £523 million. Total capacity is just over 1 billion lb/y, mostly in MDI-based materials though ICI also manufactures some TDI-based materials as well as polyols. It has 50 sales/representative offices worldwide. In 1998, the business achieved a trading profit (after corporate charges) of £90 million on sales of £816 million.
- Titanium dioxide: ICI’s Tioxide titanium dioxide business has manufacturing sites in Canada, France, Italy, Spain, United Kingdom, and Malaysia, and joint ventures in South Africa and the United States. Its total nameplate capacity approaches 1.3 billion lb/yr with an asset value of £661 million. Trading profits were £58 million on sales of £574 million.
- Petrochemicals: Huntsman will purchase ICI’s aromatics business (primarily benzene and paraxylene, which is used in polyester and polyurethane production) and ICI’s share of olefins production (chiefly ethylene and propylene for polymers) from the cracker at Wilton, Teeside. The assets are valued at £96 million. The business lost £27 million on sales of £659 million in 1998.
Huntsman will acquire the businesses by forming a new company, Huntsman ICI Holdings (HICI) in partnership with ICI. HICI will include Huntsman’s US propylene oxide business, which earned $79 million on $339 million sales in 1998. ICI will retain a £300 million investment in the new business for a minimum of three years. It will use the remaining £1.4 billion from the transaction to reduce debt incurred with its £8 billion purchase of Unilever’s specialty chemical business in 1997.
https://www.chemicalonline.com/doc/ici-divests-urethanes-titanium-dioxide-petroc-0001
August 4, 2020
Wanhua Forms Shipping JV
ADNOC L&S And Wanhua Chemical Group Form Strategic Shipping Joint Venture
Faizan Hashmi 4 hours ago Tue 04th August 2020 | 03:15 PM
ABU DHABI, (UrduPoint / Pakistan Point News / WAM – 04th Aug, 2020) ADNOC Logistics and Services, the shipping and maritime logistics subsidiary of the Abu Dhabi National Oil Company, ADNOC, announced today the formation of a new strategic joint venture with Wanhua Chemical Group. The new company named AW Shipping Limited is incorporated in Abu Dhabi Global Market.
This strategic agreement further strengthens the collaboration between ADNOC and Chinese companies and builds on the deep-rooted bilateral relations between China and the UAE. The joint venture underscores ADNOC’s focus on value-creating deals and will support the delivery of its 2030 smart growth strategy.
AW Shipping Limited will own and operate a fleet of very large gas carriers, VLGCs, and modern product tankers. The company will be responsible for transporting liquefied petroleum gas, LPG, cargoes and other petroleum products, sourced from the ADNOC Group and global suppliers, to Wanhua Group’s manufacturing bases in China and around the world. To deliver maximum fleet efficiency, the company may also pursue other market opportunities.
Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology and ADNOC Group CEO, said, “We are very pleased to establish this strategic joint venture with Wanhua Chemical Group. This creative win-win partnership strengthens our growing relationship and will deliver greater value and efficiency for both our organizations. Importantly, the JV further solidifies ADNOC L&S’ position as the largest, fully integrated logistics and shipping company in the UAE and paves the way for the transportation of greater LPG volumes to China, in line with market demand.
“The establishment of AW Shipping supports ADNOC’s smart growth and value creation strategy and is another example of how ADNOC is stretching the margin from every molecule that we produce, refine, ship and sell, while also forging stronger partnerships in key growth markets.”
The formation of AW Shipping follows a 10-year LPG supply contract signed between ADNOC and Wanhua in November 2018.
ADNOC L&S is a crucial enabler in the ADNOC value chain, delivering oil, gas, and petroleum products to customers across the world.
It owns and operates the UAE’s largest shipping fleet, which it expects to grow further in the coming years as ADNOC increases its upstream and downstream production capacity, and enters into trading.
Liao Zengtai, Chairman of Wanhua Chemical Group, said, “We are very glad that joint venture has been established with the concerted efforts of both parties. The new company will strengthen the strategic cooperation between ADNOC and Wanhua and will also ensure the stable supply of LPG cargoes and other petroleum products for Wanhua system. More importantly, the cooperation will make contribution to the “One Belt, One Road” project.”
ADNOC L&S was formed in late 2016 from three ADNOC subsidiaries, ADNATCO, IRSHAD, and ESNAAD. The integration created synergies between shipping, marine services, offshore logistics, and onshore logistics to create the largest integrated shipping and maritime logistics company in the GCC. ADNOC L&S provides safe, reliable and cost-competitive maritime and logistic solutions to ADNOC Group companies and to more than 100 global customers.
The company creates value for its customers and partners through four major activities; firstly, shipping activities, either with its own vessels or via chartering, which includes crude and refined products, dry bulk, and LNG transport. Secondly, marine service activities which comprise petroleum port operations, diving, and oil spill response. Thirdly, offshore logistics activities that include offshore support vessels and an integrated logistics base in Mussafah, Abu Dhabi, one of the largest in the region. Finally, onshore activities which consist of a marine passenger terminal and a container terminal.
Last year, ADNOC L&S transported over 20 million metric tonnes of various oil & gas products and dry bulk commodities.
Wanhua Group is one of the world‘s leading producers for methylene diphenyl diisocyanate a key ingredient in the manufacture of high-performance adhesives and synthetic fibers, which go into a wide range of industries.
https://www.urdupoint.com/en/middle-east/adnoc-lamps-and-wanhua-chemical-group-form-992341.html
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