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EU clears Alpek acquisition of Lotte UK

December 10/2019

MOSCOW (MRC) -- The European Commission has approved the proposed acquisition of Lotte Chemical UK Ltd by petrochemicals giant Alpek, part of Mexican conglomerate Alfa Group, said Plasticsnewseurope.

In its decision, announced 4 Dec, the European Commission concluded that the proposed transaction would raise no competition concerns given the limited horizontal and vertical overlaps between the activities of the companies.

Lotte UK is active in the manufacture of polyethylene terephthalate (PET) resin while Alpeks activities cover a range of areas including polyester, plastics and chemicals, aluminium auto components, refrigerated foods, and IT & telecoms.

Under the deal, wich was disclosed late October, Alpek will acquire the UK subsidiary of Lotte Chemical Corp., including its 350 kilotonne-per-annum (ktpa) polyethylene terephthalate (PET) facility in Wilton, in south-eastern UK.

The terms of the agreement have not been disclosed. The move marks the Mexican firms first acquisition outside the Americas, raising the companys PET capacity to 2.8 million tonnes a year.

According to Gordon Haire, research director at London consulting firm Wood Mackenzie, the change of ownership also marked the exit of Lotte Chemical from PET manufacturing in Europe.

The deal is also significant as it could have significant implications for regional PTA trade flows. Lotte Chemical, Haire explained, exported around 110 ktpa of PTA from Korea to the UK over the last few years, while Alpek is also a long-established supplier into the European PTA market.

Alpek is a leading petrochemical company operating two business segments of polyesters (PTA, PET and polyester fibres), and plastics & chemicals (polypropylene, expandable polystyrene, and other speciality and industrial chemicals).

The company is an integrated producer of PTA and PET in North America, with annual sales of USD6.9bn. It operates 27 plants in the US, Mexico, Canada, Brazil, Argentina and Chile, and employs more than 5,700 people.

According to MRC's ScanPlast report, Russia's estimated PET consumption dropped in September 2019 by 10% year on year, totalling 58,210 tonnes. Overall, 551,320 tonnes of PET was processed in Russia in the first nine months of 2019, up 9% year on year.


mrcplast.com
Author:Anna Larionova
Tags:PET-granulate, PET bottles, PET films, PET preforms, Alpek, Lotte Chemical.
Category:General News
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