HOUSTON (ICIS)--Celanese and Blackstone are abandoning plans to create an acetate-tow joint venture after hitting an impasse with European regulators, the US-based compounder and acetyls producer said on Monday.
The European Commission required too many divestitures, which eliminated the advantages that laid at the heart of the deal, Celanese said.
“We are disappointed with the approach that the European Commission has taken on this case, and we will be reviewing our strategic options,” said Celanese CEO Mark Rohr.
Celanese and Blackstone announced the plans for the joint venture on 18 June 2017. Under the proposal, Blackstone's Rhodia Acetow business would be combined with Celanese's Cellulose Derivatives business.
Celanese would have owned 70% of the business, while Blackstone would have held 30%. Revenues would have been $1.3bn/year.
Celanese will discuss alternative plans for the Cellulose Derivatives business during its Investor Day, which is scheduled for 1 May, the company said.