DSM and Firmenich greenlight exchange offer for merger

DSM and Firmenich greenlight exchange offer for merger

MOSCOW (MRC) -- DSM and Firmenich have officially launched the exchange offer as part of their merger process, said the companies.

The acceptance period will begin 23 November and run until 31 January 2023, unless it is extended.

Firmenich shareholders have already approved the transactions and the DSM board has recommended that its shareholders likewise accept.

Completion is currently expected in Q1 2023. “We are entering the exciting next phase as we look to bring together DSM and Firmenich's complementary capabilities, likeminded and passionate people, and unite the heritages of two great and historic companies,” said Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM in a statement.

“DSM-Firmenich is set to become the leading creation and innovation partner in nutrition, beauty and wellbeing, capable of delivering enhanced growth and shareholder value creation through strong growth synergies, as well as an enhanced customer offering and an even greater positive impact across the world.”

Gilbert Ghostine, CEO of Firmenich, added: “This merger is a transformational moment for the history of both businesses. “DSM-Firmenich will be a global-scale partner, uniquely positioned to anticipate and better address the evolving needs of consumers by unlocking opportunities for our customers, and our people.

“Our two companies have an unrelenting commitment to their role in society with ESG at the core of everything we do, and I firmly believe that DSM-Firmenich will have a positive and measurable impact on people, climate and nature.”

Plans to create the new DSM-Firmenich entity were announced in May.

DSM-Firmenich will comprise four businesses: Perfumery & Beauty; Health, Nutrition & Care, which covers the dietary supplements industry; Food & Beverage/Taste & Beyond; and Animal Nutrition & Health.

It will be co-headquartered in Kaiseraugst, Switzerland and Maastricht in the Netherlands.

In June, it was announced that Ghostine would retire from his position as Firmenich CEO upon completion, with Matchett and de Vreeze, the current Co-CEOs of DSM, poised to head up the new company as joint-CEOs of DSM-Firmenich.


Linde starts green hydrogen production in Greece

Linde starts green hydrogen production in Greece

MOSCOW (MRC) -- Linde, the world’s largest industrial gases company, said on Tuesday it has started producing green hydrogen at its facilities in Greece, said Reuters.

Green hydrogen is made from water by electrolysis using renewable wind and solar power.

The U.S.-German company, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, said it was the first green hydrogen production in Greece.

Hydrogen is key in Europe’s energy transition to a sustainable environment and net zero emissions by 2050.

Linde starts green hydrogen production in Greece, November 22, 2022.

We remind, Linde and SLB announced that they have entered into a strategic collaboration on carbon capture, utilization and sequestration (CCUS) projects to accelerate decarbonization solutions across industrial and energy sectors. The collaboration will combine decades of experience in carbon dioxide (CO2) capture and sequestration; innovative technology portfolios; project development and execution expertise; and engineering, procurement and construction (EPC) capabilities.


LUKOIL's Bulgarian refinery may shut down if it cannot export

LUKOIL's Bulgarian refinery may shut down if it cannot export

MOSCOW (MRC) -- LUKOIL Neftochim Burgas , Bulgaria's only oil refinery, may have to shut down if the government does not follow through on plans to allow the Russian-owned business to continue exporting, said Reuters, citing Chief Executive Ilshat Sharafutdinov.

The European Union has agreed to a ban on Russian crude oil imports as part of its sanctions against Russia for its invasion of Ukraine in February. The ban takes effect next month, but Bulgaria has been given an exemption and is allowed to import Russian crude until the end of 2024.

The Bulgarian caretaker government plans to allow the LUKOIL Neftochim refinery to continue importing Russian crude once the ban takes effect and give it permission to export its output. The previous government wanted to limit sales of the refinery's fuels to just the Bulgarian market.

LUKOIL Neftochim, which has switched to only Russian crude since the spring, expects to process a record high 7.1 MMt of crude oil this year, Sharafutdinov said. He said the refinery exports about 50% of its fuels and other end-products.

"The refinery cannot work if the exports are curtailed," Sharafutdinov told a joint news conference with Bulgarian deputy Prime Minister in charge of economic policy, Hristo Alexiev.

After talks with the Bulgarian government, the refinery, situated in the Black Sea city of Burgas, has agreed to change its business model and keep the profits from its operations in Bulgaria, which will seriously increase the taxes it pays, Alexiev said.

The government has already proposed to the parliament a temporary windfall tax of 33% on profits of oil, gas and coal companies for this and next year.

Alexiev said Bulgaria expects to collect around 100 MM levs in taxes from LUKOIL's operations for 2022, which should jump to 700 MM levs in 2023.

Sharafutdinov said LUKOIL Neftochim could pay such taxes next year if the market conditions remain the same and it could work on full capacity, processing Urals crude and exporting its output.

We remind, Lukoil finished construction of a Petroleum Residue Recycling Facility with production capacity of 2.1 million tonnes per year at its LUKOIL-Nizhegorodnefteorgsintez LLC refinery. The facility is comprised of a delayed coking unit, diesel fuel and gasoline hydrotreatment unit, fractioning column, hydrogen and sulphur production unit, as well as infrastructure facilities.

Arkema increases its bio-based offer with a new range of mass balance acrylic materials

Arkema increases its bio-based offer with a new range of mass balance acrylic materials

MOSCOW (MRC) -- Arkema is launching a new a range of bio-attributed acrylic monomers and specialty acrylic additives and resins using the mass balance approach, said the company.

This follows the certification the company’s new range of acrylic materials received from the International Sustainability and Carbon Certification PLUS (ISCC+) framework.

These monomers enable Arkema to start offering certified bio-attributed specialty acrylic additives and resins for a wide range of applications. This positions the Group as a global leader in the offer of bio-attributed acrylic materials and as a key partner for customers on the market.

The launch of Arkema’s new range of bio-attributed acrylic monomers and specialty acrylic additives and resins, mass-balance certified under the International Sustainability and Carbon Certification-PLUS (ISCC+) framework, is a key milestone in the transition to a more renewable and lower carbon economy.

The replacement of fossil feedstock by bio/bio-circular feedstock will support Arkema’s customers in achieving their climate plan goals by reducing their scope 3 greenhouse gas emissions.

We remind, Arkema’s Virtucycle program places the advanced materials designer at the center of a virtuous cycle to source, recycle, and recertify advanced polymers. In addition to being the specialty recycler, Arkema plays the role of matchmaker among its customers while playing an optional key role in eco-designing the finished product produced from the recycled material.


Yansab to shut down complex for 53-day scheduled preventive maintenance

Yansab to shut down complex for 53-day scheduled preventive maintenance

MOSCOW (MRC) -- Yanbu National Petrochemical Co. (Yansab) announced that the 53-day scheduled turnaround of its complex for preventive maintenance, under the stipulated industrial and technical standards, will start as of Jan. 10, 2023, said Argaam.

This turnaround will contribute to enhancing the reliability of the petrochemical producer’s plants and improving its operational and production efficiency. It also comes at a time that the global growth is forecasted to slow. This preventive maintenance was referred to in the board's 2021 report, Yansab said in a statement to Tadawul today, Nov. 20.

The move’s expected financial impact depends on the actual duration of the maintenance period, in addition to the average sale prices of products as well as feedstock prices, which are difficult to predict.

The related financial impact will reflect on the first and second quarters of 2023. Yansab indicated that it will work to reduce this influence by optimizing the available inventory.

The necessary actions have been taken to limit the potential impact on customers, it added, noting that any significant future developments will be duly announced.

We remind, Yanbu National Petrochemical Co. (Yansab) reported a net profit after Zakat and tax of SAR 510.6 million in the first nine months of 2022, a 57% decrease from SAR 1.196 billion in the year-ago period.