(Edited from: “Letter to shareholders”, annual report, “IPIC and Nova Chemicals announce closing of transaction”, “IPIC closes on $2.3bn takeover of Canada's Nova Chemicals”, ICIS news and “IPIC makes $2.3bn acquisition bid for NOVA Chemicals”, ICIS news)
On 3 July 2009, International Petroleum Investment Company (IPIC) completed the acquisition of Nova Chemicals. "We believe that Nova Chemicals is a perfect fit within our long-term petrochemical growth strategy, and this combination is a key component in achieving IPIC's goal of becoming a global industry leader", says managing director and board member of IPIC, H.E. Khadem Al Qubaisi.
It is believed that under the proposed agreement, Nova would operate as an independent chemicals and plastics company, while continuing to invest in its operating facilities in Alberta and Ontario as well as its R&D centre in Calgary.
Nova said the two companies’ operations were geographically complimentary, bringing together IPIC’s existing petrochemicals activities in Europe, the Middle East and Asia, with the Canadian company’s manufacturing base in North America.
"We are very pleased to complete this transaction and we are excited about the future opportunities for Nova Chemicals to grow in Alberta and elsewhere”, says president and chief executive officer, Chris Pappas.
Nova strategy
Since its founding in 1998, Nova Chemicals has utilised a four-point strategy:
- To focus on plastics and chemicals;
- Be the low-cost provider;
- Invest only for high returns; and
- Build upon and add to its competitive advantage.
Research and technology is a key focus of Nova Chemicals. It states that it has increased annual R&D spending by 55% since its start up in 1998. In addition, it says its technology is fundamental to maximising the value of its customers' businesses as well as its own and it is continually advancing its technology by developing, tailoring and improving its products.
Looking ahead, Nova Chemicals plans to continue to invest in its technology and evaluate new growth opportunities. It states that the company is built on low cost feedstocks and operations, differentiating technology and long-term customer relationships. Following the acquisition by IPIC, Nova Chemicals will become an “integral part of an emerging global force in its industry”.
“IPIC’s current portfolio of petrochemical investments and their current growth provide significant synergy opportunities with Nova Chemicals’ technology, markets, customers and people. With the financial strength of IPIC, Nova Chemicals has the potential to grow substantially in Alberta, improve its operations in Ontario and look to other growth opportunities in the Americas as well. These are exciting prospects for Nova Chemicals”, concludes Pappas.
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See the article and analysis of the ICIS Top 100 on ICIS news.
Financial highlights: Nova Chemical, year ended 31 December
|
|
2008 |
2007 |
2006 |
2005 |
2004 |
|
Sales ($ m) |
7,366 |
6,732 |
6,519 |
5,616 |
5,270 |
|
Operating Profit ($ m) |
44 |
553 |
-680 |
3 |
264 |
|
Net Profit ($ m) |
-48 |
347 |
-703 |
-101 |
252 |
|
Total Assets ($ m) |
4,034 |
4,856 |
4,077 |
5,178 |
5,047 |
|
Diluted earnings per share ($) |
-0.57 |
4.16 |
-8.52 |
-1.22 |
2.91 |
|
Number of Employees |
2,850 |
2,820 |
3,300 |
4,100 |
4,100 |
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Nova Chemicals
Company Structure
Nova Chemicals is a focused commodity chemical company, producing styrenics and olefins/polyolefins. Nova Chemicals' roots stem back to the 1950's when it began life as The Alberta Gas Trunk Line Company. In July 1998, Nova Chemicals was launched as an independent company.
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