Samsung mulls buying BP stake in Korea PTA JV

03 August 2007 10:10  [Source: ICIS news]

SINGAPORE (ICIS news)--Samsung Group, the South Korean chaebol, is evaluating plans to buy BP’s stake in their purified terephthalic acid (PTA) joint venture, a company spokesman said on Friday.

However, he declined to say when a decision will be made or if talks were under way.

An unnamed senior group executive was quoted as saying that the two sides were expected to settle takeover terms by the end of next month, according to a report in the Korea Times.

“After a series of internal discussions, we decided to acquire the entire stake to transform the petrochemical company into a wholly owned energy unit to better cope with the rapidly changing business environment in the sector,” the executive added.

BP declined to comment on the matter.

The energy major said last year that it plans to sell its 47.4% stake in Samsung Petrochemical as it has a different view of the joint venture’s future strategy.

Other than BP, the other four shareholders are Korean companies: Samsung Corp and Samsung Electronics hold 13.05% and 12.96% stakes respectively; Cheil Industries, which also produces polycarbonate (PC), has a 21.39% share; and the remaining 5.2% stake is held by Korean retailer Shinsegae Group.

SPC has a total PTA production capacity of 1.8m tonnes/year.

Mark Watts contributed to the article.

By: Florence Tan
+65 6780 4359

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