MOSCOW (MRC) -- French chemicals group Arkema has offered to buy oil major Total's adhesives business Bostik, which makes Blu-Tack, for EUR1.74 billion (USD2.24 billion), as per the company's press release.
Total, under pressure from shareholders to improve its cash flow and raise dividends, has embarked on a major divestment program. A sale of Bostik at that price would increase its announced disposals this year to near USD20 billion - at the top of its target range of USD15-USD20 billion.
For Arkema, which said it hoped to finalize the deal in the coming months, buying Bostik would expand its position in a fragmented global adhesive and sealants market.
Bostik, which makes adhesives and sealants used in products ranging from aircraft components and building materials to diapers, had 2013 sales of EUR1.5 billion and has 4,900 staff worldwide. The company, whose main rivals are Henkel and H.B. Fuller has been a Total unit since 1990.
As MRC reported previously, in July 2014, Arkema and Omya, a Switzerland-based global provider and distributor of specialty chemicals, entered into an exclusive pan-European distribution agreement. Under this distribution agreement, Omya will market Arkema's plastic additives range for various polymer markets (impact modifier and processing aid solutions).
Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC