12 November 2010 17:46 [Source: ICIS news]
HOUSTON (ICIS)--NOVA Chemicals plans to sell its share of joint venture INEOS NOVA to INEOS in the first quarter of 2011, the Canadian producer said on Friday.
“On October 31, 2010, we and INEOS entered into an agreement providing for the acquisition by INEOS of 100% of our equity interest in the INEOS NOVA joint venture,” NOVA said in its third-quarter earnings announcement.
“We expect the transaction to close in the first quarter of 2011, subject to receipt of regulatory approvals, required consents and other customary closing conditions.”
NOVA did not disclose a sales price for its part of the styrene and styrene polymers producer.
“It’s premature to say how much cash we’ll receive, we still have to work through valuation and other closing related issues,” said NOVA CEO Randy Woelfel during the company’s earnings conference call.
“Through aggressive business restructuring the JV has made fundamental progress and is now a positive earnings contributor,” he continued. “However, this JV is not a strategic priority for us. We are now in a better position to concentrate and focus on better opportunities for us.”
Woelfel added: “We do not expect to record a material gain or loss relating to the transaction, [it] will result in a modest amount of cash, and will relieve us of certain liabilities.”
The joint venture was created in 2005 and was expanded in 2007 to include North American polystyrene (PS), performance products and styrene monomer.
INEOS NOVA produced $2.1bn (€1.5bn) in revenue in 2009 and has 1,170 employees, according to its website. It has 11 plants in six countries.
($1 = €0.73)
Additional reporting by Brian Ford and Linda Naylor
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