MOSCOW (MRC) - The Federal Antimonopoly Service (FAS) of Russia has extended the period for consideration of SIBUR Holding's petition to purchase 100% of TAIF's voting shares for two months, requested additional information, TASS reports with reference to the FAS.
The agency asked the companies for additional information in order to "comprehensively assess its impact on the petrochemical industry markets." Earlier, the Federal Antimonopoly Service announced on May 26 that it had received an application for the purchase of 100% of TAIF's voting shares by SIBUR. SIBUR CEO Dmitry Konov noted that the deal will be two-stage. According to him, if the transaction is approved by the FAS, the first stage may be completed in the third quarter of 2021.
In April 2021, SIBUR Holding and TAIF announced the start of the merger of the oil and gas chemical businesses of the companies. As part of the merger, a company will be created on the basis of SIBUR Holding PJSC, in which the existing shareholders of TAIF will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises.
The remaining stake in TAIF can be subsequently purchased by the merged company. The deal will be closed subject to the necessary corporate procedures and regulatory approvals. The combined capacity of the combined group for eight base polymers will amount to 5.7 million tonnes, or 70.7% of those operating in Russia. Today, SIBUR's capacity for base polymers is almost twice that of TAIF. Eight production sites of SIBUR with a capacity of 3.9 million tons and TAIF has two plants (Kazanorgsintez and Nizhnekamskneftekhim) with a total capacity of 2.2 million tons.
As a result of the merger, the total capacity share of the new SIBUR-TAIF group will be 100% for the production of linear low density polyethylene (LLDPE), 87.4% for polypropylene (PP), 80.8% for HDPE and 59% for LDPE.
According to the ScanPlast of MRC, SIBUR Tobolsk / ZapSibNeftekhim actually maintained the April level of capacity utilization in May, the final polypropylene production figure was 76,900 tonnes (in late April - early May, the company carried out preventive maintenance). In general, in the first five months of the year, the total volume of polypropylene production at the Tobolsk complex reached 439,300 tonnes, which is 25% more than a year earlier.
SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.).
PSC "TAIF" was established in 1995, is the parent company of the group of the same name, which includes enterprises structured in four business areas: oil and gas processing, chemistry and petrochemistry (energy); investment and financial services; building; telecommunications and complex services, including trade. TAIF Group of Companies is a large Russian holding that controls 96% of the chemical, petrochemical and oil and gas processing industries in Tatarstan. The most important of its areas is the Chemistry, Petrochemistry and Oil and Gas Processing Division, which includes the leading Russian polymer producers Nizhnekamskneftekhim and Kazanorgsintez.
MRC