MOSCOW (MRC) -- Russian petrochemical companies Sibur International and TAIF Group have finalised a deal to merge and create the largest petrochemical company in the country and one of the biggest in the world, said Interfax.
"Under the agreement, TAIF shareholders will receive a 15% stake in the new combined company in exchange for 50% plus 1 share in JSC TAIF. To ensure faster integration and higher efficiency of the combined entity’s operations and investment program, the parties have agreed on an early exercise of an option for the remaining stake of TAIF’s shareholders," said a statement released by both companies.
Following the completion of all ongoing investment projects, the new combined company will be among the top five producers of polyolefin and rubber globally. The company’s investment program will yield further growth of chemical non-commodity exports and import substitution, and also unlock new ways of tackling sustainability and environmental challenges.
The deal brings together the two companies’ expertise in major investment projects and facilitates efficient distribution of feedstock, which will boost the Russian Republic of Tatarstan’s petrochemical cluster and pave the way for new partnerships.
JSC TAIF is the parent company of the largest private group in Russia. Its key business lines include oil refining and gas processing, chemicals and petrochemicals, energy, and investments. Its chemical and petrochemical product portfolio comprises 581 commodities, with around 40% of products exported.
In Russia, TAIF Group is one of the biggest plastics and rubber producers as well as being the world’s biggest isoprene rubber producer.
Dmitry Konov, Chairman of the Management Board at Sibur Holding, said: "This combination of industry leaders represents a significant step in the evolution of the Russian petrochemical sector. We are combining our competencies, energy and ambition to lay the groundwork for what is sure to become a global leader."
Ruslan Shigabutdinov, General Director of JSC TAIF, added: "Today the TAIF Group is entering a new stage of its development. The combination of our petrochemical businesses with Sibur will enable the new company to assert its leadership in the global market and become a top-5 global petrochemical producer."
Earlier it was reported that the European Commission approved the deal on 1 October.
As MRC reported, on 23 April this year, SIBUR announced a merger with TAIF by exchanging 15% of its shares for 50% + 1 share in TAIF. The scope of the transaction includes only TAIF's petrochemical and generating companies. TAIF together with SIBUR will spend more than 1 trillion rubles. for the implementation of joint projects. In total, the companies plan to implement over 30 projects.
TAIF JSC is the parent company of the largest non-public group in the Russian Federation. The group's netted revenue over the past 12 months amounted to more than RUB 720 billion. TAIF plans to enter the production of commercial products in the amount of more than 1.7 trillion rubles by 2035. per year, for this planned investment of 1.8 trillion rubles. for the next 15 years.
SIBUR manufactures and sells petrochemical products on the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.) .
MRC