Hexion's epoxy resins unit sale to Spolchemie cancelled

07 January 2009 11:35  [Source: ICIS news]

PRAGUE (ICIS news)--The proposed sale of US Hexion Specialty Chemicals' specialty epoxy resins business to Spolchemie has been cancelled, the Czech synthetic resins producer said on Tuesday.

The deal had been contingent on the multi-billion dollar merger between Hexion Specialty Chemicals and Huntsman going ahead, but that deal was terminated in December.

“These developments are disappointing but consummation of Huntsman-Hexion was always a condition of closing the Spolchemie purchase of the Hexion specialty resins business. This was clear to us from the start of the whole process,” said Paul Yianni, resins director at Spolchemie.

“We are on the look out for other strategic acquisitions or alliances. Other opportunities to rapidly expand our global reach are likely to present themselves,” he added.

Yianni said Spolchemie had “proven in this process that we have the financial and management capability to take on such a large and complex acquisition”.

Resources would now be focused on realising a new epichlorohydrin (ECH) plant in Malaysia and on establishing production in America and “on managing the business through the difficult period ahead”, he added.

“Thanks to our cost structure, high quality products, excellent market reputation and focus on customer service, Spolchemie is well placed to weather the current financial crisis,” Yianni said, noting that the company operated its Czech liquid epoxy resin, bisphenol A (BPA) and ECH plants through the Christmas period.

Spolchemie gained the chance to acquire the Hexion unit when US regulators said the business would have to be disposed of in advance of any Hexion-Huntsman merger in order to allay competition concerns.

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By: Will Conroy
+44 20 8652 3214

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