01 February 2013 18:06 [Source: ICIS news]
HOUSTON (ICIS)--Cytec Industries still expects to complete the $1bn (€740m) divestment of its coating resins business by the end of the first quarter, even though the US-based specialty materials and chemicals firm has not yet received regulatory approvals in key jurisdictions, CEO Shane Fleming said on Friday.
“We are not concerned about any regulatory issues,” Fleming said in updating analysts on the divestment during Cytec’s 2012 fourth-quarter results conference call.
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The European Commission said last month it may probe the divestment of the coating resins business to Advent International, a private equity firm with investments in a number of chemical and industrial producers. Cytec and Advent had announced the deal last October.
The divestment, along with the acquisition of UK-based composite and process materials firm Umeco last year, is a key part of Cytec’s strategy to transform its business portfolio.
Fleming added that the timing of completing the coating resins divestment would, in turn, influence the timing of Cytec’s $650m share repurchase programme, which will be partly funded with proceeds from the divestment.
On Thursday, Cytec posted a 10% year-on-year rise in fourth-quarter net profit because of higher selling volumes and prices.
Additional reporting by Jeremy Pafford.
($1 = €0.74)
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