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Chevron Phillips Chemical in bid to acquire Nova Chemicals

June 25/2019

MOSCOW (MRC) -- Chevron Phillips Chemical Company, a joint venture between Chevron Corp and Phillips 66, has offered to acquire Nova Chemicals Corp for more than USD15 billion including debt, said Reuters

Chevron Phillips Chemical, one of the worlds top petrochemical producers, would gain scale and expand its footprint through the acquisition of Nova Chemicals, whose expandable polystyrene and resins are used in a range of industries, from construction to packaging.

Abu Dhabis sovereign wealth fund Mubadala Investment Co, the owner of Nova Chemicals, has been exploring a sale of the Canadian plastics maker since the start of the year, and there is no certainty that it will accept the offer from ?Chevron Phillips Chemical, the sources said.

Another bidder for Nova Chemicals may yet emerge, some of the sources added. Mubadala could also decide to keep a stake in Nova Chemicals in a deal, one of the sources added.

The sources asked not to be identified because the negotiations are confidential. Nova Chemicals, Mubadala, Chevron and Phillips 66 did not immediately respond to requests for comment.

Headquartered in Calgary, Nova Chemicals was founded in 1954. Over the years, it has diversified its business beyond foam packaging and insulation to foam beverage cups and containers.

Nova Chemicals reported earnings before interest, taxes, depreciation and amortization of USD271 million in the first three months of 2019, down from USD418 million a year earlier, according to its website.

Abu Dhabi acquired Nova Chemicals for USD500 million in 2009 using its stated-owned International Petroleum Investment Co (IPIC), saving it from a financing restructuring due to its large debt. Since then, the companys business has grown rapidly, taking advantage of the shale-driven natural resources boom in North America.
Author:Anna Larionova
Tags:PE, ethylene, Chevron Phillips, Nova Chemicals.
Category:General News
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