MOSCOW (MRC) -- German speciality chemicals company Lanxess, one of the world’s leading manufacturers of synthetic rubber, is in talks to put its main synthetic rubber business into a joint venture with petrochemicals group Ineos, four people familiar with the matter told Reuters.
Financial terms and the size of the stakes to be held in the new entity have yet to be agreed, but Ineos has jumped to the head of a queue of interested parties and a deal could be signed within the next few weeks, the sources said.
Lanxess has also held talks with Saudi Arabian Oil Company (Saudi Aramco) and Russia's NKNK and Sibur , but negotiations over the sale of a stake or pooling of assets have proved difficult, other sources familiar with the matter said.
Saudi Aramco, Sibur, NKNK and Lanxess declined to comment and Ineos did not respond immediately to requests for comment.
The search for a strategic partner for the leading global player in synthetic rubber began more than a year ago as the company sought to combat oversupply in the industry.
Lanxess has asked prospective partners to submit final offers in the next few weeks, one person familiar with the matter said.
Chief Executive Matthias Zachert has said the group could partner with a supplier of butadiene to be less exposed to swings in the market for synthetic rubber's main raw material.
As MRC reported before, in May 2014, Lanxess undertook a complete rebranding of its butyl rubber products. A package encompassing a global ability to deliver products anywhere, anytime, extensive technical expertise, a focus on innovative solutions and customer demands - all this is what the new LANXESS X_Butyl brand stands for. The new brand family is called X_Butyl.
Lanxess is a leading specialty chemicals company with sales of EUR 8.0 billion in 2014 and about 16,600 employees in 29 countries. The company is currently represented at 52 production sites worldwide. The core business of Lanxess is the development, manufacturing and marketing of plastics, rubber, intermediates and specialty chemicals.
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