BASF completed acquisition of Cognis

(BASF) -- BASF successfully completed its acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l. controlled by Permira Funds, GS Capital Partners and SV Life Sciences yesterday (December 9, 2010). The equity purchase price was ┬700 million. Including net financial debt and pension obligations, the enterprise value of the transaction is ┬3.1 billion.

"Cognis' and BASF's know-how and range of products complement each other very well. The combination will broaden our portfolio of specialty chemicals and boost innovation for our customers , said Dr. Jurgen Hambrecht, Chairman of BASF's Board of Executive Directors.

BASF intends to fully integrate Cognis into the BASF Group. Detailed integration plans will be developed by the end of the first quarter of 2011. Completion of the structural integration is targeted for the end of 2011.

MRC

(Plastemart) -- The Shaw Group Inc. has been selected by GAIL (India) Ltd. to provide its proprietary technology and basic engineering for a new 450,000 tpa ethylene plant. Shaw also will provide support during detailed engineering, procurement and construction, and commissioning and startup of the plant, which will be part of GAIL's petrochemical complex in Pata, Uttar Pradesh.

Shaw has designed and/or built more than 120 grassroots ethylene plants worldwide. Five of those plants are in India, where Shaw also has participated in numerous projects to revamp or expand existing facilities. Shaw recently announced full commercial operation of a 1.3 million metric ton per year ethylene plant for Eastern Petrochemical Company (SHARQ) in Al-Jubail, Saudi Arabia.

MRC

(Plastics News) -- Indorama Ventures Public Co. Ltd. said its board of directors has approved the acquisition of PET resin and polyester filament yarn businesses in Poland and Indonesia from South Korea's SK Chemicals.

In November, Indorama had signed two definitive share purchase agreements, the first with Seoul, South Korea-based SK Chemicals to acquire the PET business of SK Eurochem Sp. z o.o. in Poland, and the second with SK Chemicals' subsidiary SK Syntec to acquire the PET and polyester business of PT SK Keris and PT SK Fiber in Indonesia.

Indorama said it expected the transaction to close simultaneously during the first quarter of 2011, subject to local regulatory approvals and condition precedents in the agreement.

The acquisitions would expand Indorama's global platform and reinforce its focus on the polyester value chain.

MRC

(Plastics News) -- Solutia Inc. will expand production of its acoustic polyvinyl butyral sheet for automotive application to its largest PVB manufacturing site in Gent, Belgium.

The St. Louis-based company already produces standard PVB sheet ≈ which is used as an inner layer in windshields and some other windows in cars and trucks ≈ at Gent. It added production of a PVB with an added improved acoustic performance for architectural uses at Gent earlier this year.

The new automotive acoustic PVB lines, sold under the brand name Saflex Q series, will take place within the existing production facility, using existing infrastructure, the company said in a Dec. 8 news release.

MRC

(ICIS) -- Polypropylene (PP) buyers are being forced to pay more in December because of better-than-expected demand and restricted availability, with some producers beginning to warn of further hikes in January, market sources said on Thursday.

Producers aimed to cover the ┬22/tonne increase in the December propylene monomer contract, a number many now considered too low given the recent rise in upstream costs. The propylene contract settled at ┬960/tonne FD (free delivered) NWE (northwest Europe).

Costs had increased considerably in recent weeks. Brent crude oil was back up to $91.46/bbl on Thursday, in line with levels seen only in October 2008, and naphtha was trading at $828-832/tonne CIF (cost insurance freight) NWE.

Some PP buyers were making parallels with 2008, when it seemed that prices could only go one way, before falling spectacularly to well below the propylene contract price. Producers did not envisage such a drop, however.

MRC