Apollo Global to take Univar private in USD8.1 bln deal

Univar Solutions Inc. and Apollo announced that funds managed by affiliates of Apollo have entered into a definitive merger agreement to acquire the Company in an all-cash transaction that values the Company at an enterprise value of approximately USD8.1 bn, said the company.

The transaction includes a minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority ("ADIA").

The agreement provides that Univar Solutions shareholders will receive $36.15 per share in cash, which represents a 20.6% premium to the Company's undisturbed closing stock price on November 22, 2022. The transaction consideration also represents a premium of 33.6% to the volume-weighted average price of Univar Solutions for the 30 trading days ending on November 22, 2022.

"We are pleased to have reached this agreement with Apollo, which will provide immediate and certain cash value for Univar Solutions shareholders," said Chris Pappas, chairman of the Univar Solutions Board of Directors (the "Board"). "The Board's decision follows a comprehensive review of value creation opportunities for Univar Solutions. We are confident this transaction is the right path forward and achieves our goal of maximizing value for Univar Solutions shareholders."

David Jukes, president and chief executive officer of Univar Solutions, said, "Over the last three years, we have transformed the Company, putting the customer at the center of all we do, which has solidified our position as a leading value-added service and solution provider. This transaction reflects the success of our strategy and delivers substantial value to our shareholders. It is a testament to the tireless efforts of my colleagues, whose commitment to our purpose of helping keep our communities healthy, fed, clean, and safe has enabled our success. In Apollo, we are pleased to gain a partner to support continued investment in our portfolio and I look forward to working closely with their team as we grow Univar Solutions and serve our key suppliers and customers globally."

Apollo Private Equity Partner Sam Feinstein said, "Univar is a global leader in specialty chemicals and ingredients distribution, fueling a vast array of industries with innovative, safe and sustainable solutions. In recent years, David and his team have made tremendous progress enhancing the customer experience, and we believe Univar can accelerate its long-term strategy as an Apollo Fund portfolio company. We look forward to leveraging our extensive experience in the sector to support management in this exciting next phase."

We remind, Univar Solutions BV, a subsidiary of Univar Solutions Inc, a leading global solutions provider to users of speciality ingredients and chemicals, announced that the company has been appointed as distributor for Marott Graphic Services (MGS Chemistry Group) unique rust protection additives for inks, coatings, rust prevention oils, and lubricants and metalworking fluids in Europe. The new agreement between the two companies includes additives for oils, lubricants, and coatings in the TINSCO range of rust inhibitors.

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Chevron Corp is collaborating with agribusiness firms Corteva Inc and Bunge Ltd to produce renewable fuels from canola crops, the companies announced.

As part of the collaboration, the companies will introduce winter canola hybrids in the southern United States. Bunge Chevron Ag Renewables, a joint venture between Bunge and Chevron, will purchase the harvested winter canola crop from farmers and use the resulting oil to create renewable fuel.

U.S. state programs, led by California's Low Carbon Fuel Standard (LCFS), reward fuel producers for decarbonizing by producing renewable fuels, and the producers have responded by ramping up production of such "greener" fuels.

The transportation sector accounts for about a quarter of the United States' greenhouse gases. The U.S. Energy Department projects that renewable diesel will be about 7% of the overall diesel pool by 2030; it is currently just 5%.

By introducing the winter canola crop, the companies said they hope to provide a sustainable crop rotation option and create a new revenue stream for farmers.

We remind, Chevron Corp. posted a record USD36.5 bn profit for 2022 that was more than double year-earlier earnings but fell shy of Wall Street estimates, undercut by an asset writedowns and a retreat in oil and gas prices.
The second largest U.S. oil producer's adjusted net profit for 2022 beat by about USD10 billion its previous record set in 2011. But USD1.1 B in writedowns in its international oil and gas operations in the fourth quarter left earnings short of forecasts for adjusted net profit of USD37.2 B.

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The European Commission has approved AGROFERT Group’s acquisition of the nitrogen business of Borealis AG (Borealis NITRO), the Commission said in a statement on Monday.

The transaction, announced last year, will raise no competition concerns in the European Economic Area. In particular, the Commission found that the transaction would not significantly reduce competition in markets for:
- Nitrogen fertilisers
- AdBlue non-toxic liquid used as exhaust fluid for diesel engines
- Technical nitrogen products such as aqueous ammonia and weak nitric acid

Furthermore, the transaction does not raise concerns in relation to the distribution of nitrogen fertilisers in the Czech Republic and Slovakia, the Commission said.

Borealis NITRO encompasses all nitrogen activities of Austria-based chemicals producer Borealis AG. AGROFERT is a Czech Republic-based nitrogen fertilizer company.

We remind, Borealis, one of the world’s leading providers of advanced and circular polyolefin solutions and a European market leader in base chemicals, fertilizers and the mechanical recycling of plastics, has received a binding offer from AGROFERT, a.s. for the acquisition of Borealis’ nitrogen business including fertilizer, melamine and technical nitrogen products. The offer values the business on an enterprise value basis at EUR 810 mn.

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NOVA Chemicals, a leading supplier of polyethylene (PE) for food packaging, delivered a commercialized FDA-compliant high-density recycled PE (rPE) resin to market, said the company.

The new grade is its first mechanically recycled food-contact resin and is part of the Company’s recently announced SYNDIGO rPE portfolio.

The resin, SYNDIGO rPE-0860-FC, is a lower-emission option compared to virgin PE and enables converters and brand owners to incorporate rPE into food packaging products. It is sourced from natural high-density PE milk jugs and is ideal for various types of flexible and rigid food packaging.

“Adding the first food-contact rPE to the SYNDIGO portfolio increases rPE usage and underscores our commitment to eliminating plastic waste and reducing the carbon footprint of plastic packaging,” said Alan Schrob, NOVA Chemicals director of mechanical recycling. “Achieving the high level of performance needed for use in food contact puts this recycled resin in a field with few others and allows our customers to target the most demanding applications."

We remind, NOVA Chemicals Corporation announced the establishment of NOVA Circular Solutions, a new line of business focusing on lower-emission, recycled solutions that will help reshape a better, more sustainable world. NOVA Circular Solutions will be home to the SYNDIGOTM brand, the company’s newest portfolio of recycled polyethylene (rPE). NOVA Circular Solutions is led by a team of experts in plastics development, recycling technology, additive science, packaging design, and regulatory compliance. It is headed by Alan Schrob, recycling director, who has nearly 30 years of experience in plastics, manufacturing, health, safety, and the environment.

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Thyssenkrupp nucera and Unigel have signed a Memorandum of Understanding (MoU) to increase the capacity of the green hydrogen plant that Unigel is developing in Bahia, Brazil, from 60 MW to 240 MW of water electrolysis, said the company.

The signing ceremony was held in Belo Horizonte, during the visit of the German Federal Minister for Economic Affairs and Climate Action, Dr. Robert Habeck. This is a key step for both companies continue their good collaboration to accelerate the green transformation through the development of the green hydrogen economy worldwide.

Unigel's facility will be the first industrial-scale green hydrogen plant in Brazil. It is planned to be delivered at the end of the year. In the first phase, the plant will have a total water electrolysis capacity of 60 MW with thyssenkrupp nucera standard electrolyzers and an initial production capacity of 10,000 tons/year of green hydrogen and 60,000 tons/year of green ammonia. Unigel is one of the largest chemical companies in Latin America and the largest producer of nitrogen fertilizers in Brazil. The new plant will be an important stimulus for the development of the entire region.

“Unigel's green hydrogen plant will be the first on an industrial scale in Brazil. We continue to negotiate strategic partnerships to enable the new phases of the project”, said Roberto Noronha Santos, CEO of Unigel. The green hydrogen and green ammonia will be offered to customers seeking to decarbonize their production chains such as the steel industry, oil refineries and ammonia producers. Green ammonia will also be used in Unigel's value chain, as it is a raw material for the production of fertilizers and acrylics.

"Brazil has not only set ambitious climate protection plans, but is also implementing them. This includes, in particular, consistently exploiting the opportunities offered by green hydrogen. This is because Brazil is one of the nations predestined to take on a key role in the green transformation by consistently exploiting the potential in renewable energies. With our technologies for the development of a hydrogen economy, we are making our contribution to paving the way for the green transformation," says Dr. Werner Ponikwar, CEO and Chairman of thyssenkrupp nucera AG & Co. KGaA.

Federal Minister Dr. Robert Habeck is traveling to Brazil and Colombia from March 11 to 15. The aim of the trip is to strengthen economic relations and climate cooperation with Brazil and Colombia. Brazil and Colombia play a key role in global climate protection. This year's EEBA (German-Brazilian Business Meeting) will take place in Belo Horizonte in the state of Minas Gerais in Brazil, where Federal Minister Dr. Robert Habeck will hold talks with representatives from politics and business. Participation in the signing ceremony is part of the official agenda of the delegation.

We remind, Unigel announced plans to build a green hydrogen plant in the northeastern state of Bahia, with an initial investment of USD120 million and the goal of making it one of the largest of its kind in the world. The plant will starts its production planned for late 2023. At this moment, Unigel's integrated green hydrogen and green ammonia plant is expected to be the largest in the world. In the first phase of the project, Unigel installs three 20 MW standard electrolyzers from thyssenkrupp nucera, adding up to a total capacity of 60 MW.

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