Spolchemie deal rests on Hexion, Huntsman tie-up

22 September 2008 15:41  [Source: ICIS news]

PRAGUE (ICIS news)--Synthetic resins producer Spolchemie said on Monday a major deal for its newly formed subsidiary CHS Resins to buy the specialty epoxy resins business of Hexion Specialty Chemicals is contingent on the proposed seller completing its disputed merger with Huntsman.

 

However, Czech Republic-based Spolchemie remained hopeful the acquisition could be closed in the final quarter of this year, said Vladislav Plocek, company marketing manger for epoxy, unsaturated polyester and alkyd resins.

 

Plocek confirmed the company believed the transaction should see Spolchemie triple the size of its epoxy resin business to make it the undisputed global No 3 in the field but declined to discuss projected capacities and a report in Czech financial daily Hospodarske Noviny that cited sources as saying the acquisition would cost some koruna (Kc) 3bn ($182.3m/€125.1m).

 

The proposed deal would sees CHS Resins buy Hexion’s epoxy production facilities in Stuttgart and Duisburg in Germany, and its manufacturing sites in Argo, Illinois, and Norco, Louisiana, as well as its US research centre in Houston, the company said.

 

The US Federal Trade Commission and European Commission competition authorities would have to approve any acquisition.

 

“The acquisition is a perfect strategic fit for Spolchemie giving us global coverage and access to downstream markets,” said Paul Yianni, resins director at Spolchemie. “The Hexion epoxy business is a global leader in wind energy, construction, electrical and electronic markets and in production of epoxy specialities.”

 

The expansion, Spolchemie's first foray into production abroad, would perfectly complement the company's strengths in liquid epoxy, bisphenol-A (BPA) and epichlorohydrin (ECH), the company said, adding “there is very little overlap”.

 

The US-based companies Hexion and Huntsman have been battling in a Delaware court on their busted $10.6bn (€7.6bn) merger since the beginning of September.

 

 ($1 = €0.69/$1 = Kc6.39)

 

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By: Will Conroy
+44 20 8652 3214

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