MOSCOW (MRC) -- Indorama Ventures Public Company Limited (IVL) has inform that Indorama Netherlands B.V., a fully owned subsidiary of IVL has signed a share purchase agreement to acquire a 100% stake in the Purified Isopthalic Acid (220,000 tonnes p.a. of PIA), Polyethylene Terephthalate (175,000 tonnes p.a. of PET) and Purified Terephthalic Acid (325,000 tonnes p.a. of PTA) business in Guadarranque-San Roque, Cadiz, Spain from Cepsa Quimica SA, a wholly-owned affiliate of Cepsa, as per the company's press release.
The new acquisition in Spain is Europe's largest and only producer of 220,000 tons of PIA capacity and is the 2nd largest producer in the World. This is IVL first business in PIA, an essential component to produce PET and various other chemicals globally. The integration with PTA and PET capacity allows the site to be fully integrated where a third party refinery is connected by pipeline to supply raw materials. The PTA and PET production in Southeast Europe will complete IVL reach across Europe and lead to consolidation in Europe.
This acquisition is in line with IVL's successful strategy of Leadership, vertical integration, portfolio expansion and geographic diversification. In June 2015, IVL had acquired CEPSA'S PTA assets in Montreal Canada.
The value of the acquisition, calculated in accordance with the regulations of the Capital Market Supervisory Board and the Stock Exchange of Thailand, is less than 15 percent and the total size of transactions in the past 6 months is also less than 15 percent. Therefore, this transaction is not subject to disclose as per the regulation concerning the acquisition and disposal of assets of listed companies as prescribed by the regulation of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Acquisition and Disposition of Assets, 2004 (as amended).
The transaction is subject to usual regulatory approvals and is expected to be completed within the first half of 2016.
As MRC informed earlier, Indorama Ventures Public Company Limited (IVL) informed that its subsidiary Indorama Petrochem Limited, Thailand has signed a definitive share purchase agreement with Bangkok Cable Company, Limited, a major shareholder, to acquire 94.91 percent equity stake in polyethylene terephthalate (PET) polymers maker Bangkok Polyester Public Company Limited (BPC), Thailand.
Indorama Ventures is a leading producer in the polyester value chain in Thailand with strong global network and manufacturing across Asia, Europe and North America. Its products serve major players in diversified end use markets, including food, beverages, personal and home care, health care, automotives, textile, and industrial. The company’s main products are PTA, PET and polyester fibre, which are distributed across the world.
MRC