Arkema finalizes the financing of its acquisition project of Bostik

MOSCOW (MRC) -- Arkema has successfully completed a bond issue with a 10-year maturity and a 1.50% coupon, reported the company in its press release.

Taking advantage of favourable market conditions and supported by a strong oversubscription level the amount of the issue has been fixed at EUR700 million.

This operation represents the last phase in the financing of the project to acquire Bostik, following the EUR700 million hybrid bond issue completed in October 2014 and the EUR350 million share capital increase conducted in December.

As MRC wrote before, in late September 2014, Arkema offered to buy oil major Total's adhesives business Bostik, which makes Blu-Tack, for EUR1.74 billion (USD2.24 billion).

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.

Bostik is the third-largest adhesives company and generated sales of EUR1.53 billion in 2013. Total has granted Arkema an exclusivity period to pursue the offer. The proposed transaction is subject to approval by the relevant antitrust authorities.

The acquisition would strengthen Arkema’s position in specialty chemicals and continue the development of its high-performance materials segment, which would account for 42% of total sales following the Bostik deal, Arkema says.

Bostik develops high-performance and high-value-added bonding and sealing products for the nonwoven, industrial, construction, and consumer markets. Bostik employs about 4,900 people across 48 production facilities - 18 in Europe, 10 - in North America, 8 - in Asia, 6 - in Australia and New Zealand, 2 - in Africa, and 4 - in South America.

Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for January shipments to the CIS markets continued this week. European producers were forced to reduce their PVC prices proportionally to the fall in ethylene prices on the back of weak demand, according to ICIS-MRC Price report.

The contract price of ethylene in Europe for January shipments was agreed by EUR130/tonne lower from December. The price cut of one of feedstocks results in a EUR65/tonne reduction in PVC production costs. Some market participants said they had managed to achieve a EUR70/tonne reduction in export prices of European producers.

Negotiations over January shipments of suspension PVC (SPVC) to the CIS markets continued this week. Deals have been negotiated in the range EUR620-660/tonne FCA.

The record weakening of the euro against the dollar over the last nine years only enhances the effect of the January fall in European producers' export prices.
MRC

MOSCOW (MRC) -- The January contract price for propylene in Europe was agreed by EUR120/tonne below the level of December. However, European producers did not reduce proportionally their export polypropylene (PP) prices for the CIS markets, according to ICIS-MRC Price report.

Negotiations over January prices of European PP began last week and continued this week. Many market participants said they had managed to achieve a EUR90-100/tonne reduction from December in January prices. However, PP producers did not reduce propylene prices proportionally.

Deals for January shipments of propylene homopolymers (homopolymer PP) to the CIS markets have been negotiated in the range of EUR1,010-1,070/tonne FCA this week, down by an average of EUR90-100/tonne from December. Some market participants said they had received offer prices below EUR1,000/tonne, but this fact has not been confirmed so far.

Negotiations over shipments of propylene copolymers started from EUR1,080/tonne FCA.

The record weakening of the euro against the dollar over the last nine years only enhances the effect of the January fall in European producers' export prices.
MRC

MOSCOW (MRC) -- BASF, the world petrochemical major, has announced the commercial launch of PremAir NXT, a next-generation direct ozone reduction (DOR) catalytic coating technology that can help automakers meet new US Tier 3 and California LEV III emissions reduction requirements, as per the company's statement.

When applied to automotive radiators, the PremAir NXT solution converts harmful ground-level ozone - the main component of smog - into oxygen. PremAir NXT builds on the success of BASF’s standard PremAir coating technology, providing increased durability and higher ozone conversion performance over the lifetime of a vehicle.

"As the trend continues toward smaller automotive engines and smaller radiators, it’s important to increase the performance of the catalytic coatings that can be used," says Jim Chirumbole, Vice President, BASF Mobile Emissions Catalysts - Americas. "PremAir NXT meets this challenge, providing a new tool that OEMs can use to help manage their fleet strategy, allowing them to meet the requirements needed to earn emissions credits despite the use of smaller radiators with less coatable surface area."

As MRC informed previously, in April 2014, BASF expanded its leading position in the production of superabsorbent polymers for the global hygiene industry with a new technology. This innovation delivers superabsorbent polymers with unique properties and breakthrough performance that will provide significant additional value to the customers.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries. BASF had sales of about EUR74 billion in 2013 and over 112,000 employees as of the end of the year.
MRC