Advertisement

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Business

Polyvinyl Chloride Deal

Ineos will acquire PVC resin maker Kerling from Norsk Hydro for $913 million

by Marc S. Reisch
May 28, 2007 | A version of this story appeared in Volume 85, Issue 22

Ineos has reached an agreement to buy the Norwegian polyvinyl chloride resin maker Kerling from its parent Norsk Hydro for $913 million. The deal furthers consolidation in the PVC industry, which consultants say has long had too many players.

The acquisition will cement U.K.-based Ineos' position as the number one Western European maker of PVC, a versatile plastic used to make building siding, sewer pipes, credit cards, clothing, and flooring. Expected to close by the end of September, the deal widens Ineos' lead over its nearest competitor, Solvin, a joint venture of BASF and Solvay, according to Mary Blackburn, senior consultant with Chemical Market Associates.

Norsk Hydro initially planned to sell shares in Kerling to the public so it could focus on aluminum and power production. Instead, the deal with Ineos will add Kerling, with annual sales of about $1.1 billion, to the PVC-related assets that Ineos obtained in 2001 with the purchase of European Vinyls and ICI's chlorine chemicals business. Consultants say competition authorities are unlikely to stop the deal.

Kerling brings with it chlor-alkali, PVC, and PVC compounds businesses in Norway, Sweden, and the U.K. It also brings interests in PVC assets in Norway, Portugal, Qatar, and China, as well as a 50% partnership in the Noretyl ethylene joint venture in Norway with polyolefins maker Borealis.

In a separate transaction, Ineos agreed to sell its paste PVC business to Germany's Vinnolit. Consultant Mike Stanley of Tecnon OrbiChem, says this deal will reinforce Vinnolit's position in the specialty paste business while allowing Ineos to focus on the more commodity PVC grades.

Article:

This article has been sent to the following recipient:

0 /1 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.