21 May 2007 08:51 [Source: ICIS news]
SINGAPORE (ICIS news)--INEOS Capital on Monday said it will acquire Norsk Hydro’s polymers business for Norwegian kroner (Nkr) 5.5bn (€673.2m/$910.6m), ending speculation that talks have stalled.
The acquisition of Hydro’s polymers activities, recently renamed Kerling, will allow INEOS to progress its growth strategy in ?xml:namespace>
Following this agreement, Hydro will discontinue the process of listing Kerling on the Oslo Stock Exchange.
The acquisition is being made by INEOS Capital and standalone financing for the acquisition has been fully committed by Barclays Capital and Merrill Lynch.
The transaction, which is conditional on approval from the EU competition authorities, is expected to close in the third quarter 2007.
INEOS will benefit from an enhanced position across its chloralkali, polymer and compounds businesses, as well as acquire a 50% share in the Noretyl ethylene cracker at
The business also has interests in joint ventures in
“Hydro’s polymers business has a very good strategic fit with the INEOS portfolio. Its people, assets and technology will provide a significant opportunity for continued growth in this area”, said INEOS’s CEO Jim Ratcliffe.
“We believe this solution will contribute to a continued strong development of the polymers business,” said Hydro president and CEO Eivind Reiten.
($1 = Nkr6.04 / €1 = NKr8.17)
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