SINGAPORE (ICIS)--Japan’s Showa Denko and JX Nippon Oil & Energy Corporation (JX) will acquire the 50% stake in polypropylene (PP) producer SunAllomer owned by joint venture partner LyondellBasell for an undisclosed fee, the three firms said on Tuesday.
Showa Denko and JX, will execute the acquisition on 31 August this year, they said in a statement.
The two companies will carry out the transaction through SDK Sunrise Investment (SSI), jointly owned by them.
An absorption-type merger of SSI and SunAllomer will take place on November 1, 2016 with SunAllomer as the surviving company, the firms said.
The partnership between SunAllomer and LyondellBasell in various areas, including technology, marketing, and sales, will be maintained, they added.
SunAllomer runs a 281,000 tonnes/year PP unit in Oita and another 127,000 tonnes/year PP unit at Kawasaki.