Nova is Selling Styrenics Stake

Nova Chemicals has agreed to sell its 50% stake in its Ineos Nova joint venture to its partner, Ineos. The deal was struck on Oct. 31 but announced only last week in Nova’s earnings statements. The partners have yet to establish a purchase price, but on a conference call with investors, Nova CEO Randy Woelfel indicated that the transaction would provide Nova with some relief from liabilities and a modest amount of cash. Formed in 2005, the joint venture had revenues last year of $2.1 billion and makes styrene and polystyrene. “We have been very pleased with the progress that has been made in the years since the joint venture was established,” Woelfel said, noting that the partnership was no longer a strategic priority. The company will continue to have a performance styrenics business, which makes products such as its Arcel polystyrene-polyethylene foam. It is, however, planning to sell its Syntheon building products unit.