31 July 2008 14:09 [Source: ICIS news]
LONDON (ICIS news)--European polyethylene terephthalate (PET) players were closely following reports that Indorama and La Seda de Barcelona (LSB) were discussing some form of integration that could potentially create the world’s largest PET supplier, they said on Thursday.
A company source from Artenius, a subsidiary of LSB, said initial talks between the two companies were in progress but were at a very early stage.
“The top management is meeting and it will take time for things to progress,” added the source. "It is too early to talk in terms of a merger or not."
Initial indications that the two companies were talking came late last week in a vague statement with Spanish stock market regulator Comision Nacional de Valores (CNMV), where La Seda said the discussions were in a "preliminary stage".
“It would be good for the market, consolidation is good. At the moment we don’t see a clear leader and this could give us more weight,” said a smaller producer.
“If they did somehow merge it would be a major thing for the market. Sellers would have a firmer grip on buyers,” said a consumer.
Previous reports quoted La Seda’s annual output of industrial plastic at 1.1m tonnes/year, the biggest supplier in ?xml:namespace>
Indonesia group Indorama acquired Eastman Chemicals's UK and Netherlands PET and purified terephthalic acid (PTA) assets earlier in 2008.
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