Thailand-listed, integrated petrochemical producer Indorama Ventures PCL (IVL) is negotiating to acquire another polyester materials facility from Cia Espanola de Petroleos SAU. This acquisition will help to expand the company’s business in Europe and North America.
Sources in know of the deal, who asked not to be named, told Bloomberg that Indorama is negotiating to acquire Spain-based plant San Roque. The plant generated an annual sales of around $500 million and is owned by with Abu Dhabi’s International Petroleum Investment Co, the owner of Cepsa. However, the deal has not reached the final agreement yet, cited the sources.
IVL has been eyeing plants producing purified terephthalic acid (PTA) assets, used to produce polyesters and plastics in bottles and packaging industries, to boost the competitiveness in western markets.
DEALSTREETASIA has tried to reach the executives at IVL, but they declined to comment.
In the early of this week, it has just announced that its subsidiary Indorama Netherlands BV has signed to acquire 100 per cent stake in the PTA business of CEPSA Chimie Montreal sec in Canada from Cepsa Química SA and IQ CHIMIE Inc.
CEPSA Chimie Montréal sec is the largest and the only PTA manufacturing facility in Canada with an annual capacity of 600,000 tonnes and one of the three merchant PTA producers in North America.
IVL does not disclose the value of the acquisition of CEPTA, but the sources cited that San Roque’s plant will be a larger investment if it can close the deal.
The acquisition is in line with IVL’s strategy to expand in its core businesses, provide PTA integration to its existing PET and fiber assets and secure feedstock supplies.
IVL stock was up 25 satang today from 26.25 baht per share in its previous close.