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LANXESS Announces Plan to Acquire Chemtura
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INDUSTRY NEWS Evonik constructs specialty polyamide 12 powders production plant Evonik has broken ground in Marl, Germany, for construction of a new production plant for speciality polyamide 12 (PA12) powders. The speciality chemicals company will thus increase annual capacity for its VESTOSINT brand of PA12 powders by 50%. The amount invested lies in the mid-double-digit million euro range. The new plant is scheduled to come on stream by end-2017. VESTOSINT powders are used for coating of metals in household goods such as dishwasher racks, in the automotive industry and in medical technology. VESTOSINT impresses by its high quality, and its processing behaviour and property profile are optimally suited to the relevant 3D printing technology. VESTOSINT is a modified PA12 powder produced from polyamide granules by a special proprietary process at Evonik's Marl site.
Original Source: Evonik, 2016. Found on Coatings World, Sep 2016, 21 (9), 124 (Website: http://www.coatingsworld.com) Copyright Evonik 2016
Arkema expands in powder coating resins in India Arkema announced today plans to construct a new leading class polyester powder resin manufacturing facility, the first of its kind in India, on its existing resin platform in Navi Mumbai, Maharashtra. The project, which represents an investment of approximately $US 15 M and is targeted for completion in 2018, includes a new manufacturing unit and a dedicated new laboratory to provide both application development and technical support. The new facility will support customers in the fast growing powder coating market.
Original Source: Arkema SA, Found on Kimibiz 5 Oct 2016 (Website: http://www.kimibiz.com/ en/). Copyright Arkema SA 2016
LANXESS Announces Plan to Acquire Chemtura LANXESS (FRA: LXS) reaches the next milestone on its growth path: The specialty chemicals company announced plans to acquire US-based Chemtura Corporation (NYSE: CHMT), one of the major global providers of high-quality flame retardant and lubricant additives. With the largest acquisition in its history, LANXESS is building on its own additives portfolio and will become one of the world's major actors in this growing market. The companies have signed a definitive acquisition agreement. Under the terms of the
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agreement, Chemtura shareholders will receive USD 33.50 per share in cash for each outstanding share of common stock held, which represents an 18.9% premium to the stock's closing share price of USD 28.18 on September 23, 2016. The transaction with an enterprise value of approximately € 2.4 billion will be financed by LANXESS mainly through senior and hybrid bonds, as well as from existing liquidity. The transaction, which is expected to close around mid-2017, is subject to approval by Chemtura shareholders, required regulatory approvals and certain other customary closing conditions. Headquartered in Philadelphia, Pennsylvania, Chemtura has 20 sites in 11 countries and approximately 2,500 employees worldwide. The company reported sales of around € 1.5 billion in the last four quarters with EBITDA pre exceptionals of approximately € 245 million (EBITDA margin of approx. 16%). Approximately 45% of Chemtura's revenue is generated in North America. In addition to additives, Chemtura's portfolio includes urethanes and organometallics. Chemtura's urethane business is a major provider for hotcast prepolymers and for special, aqueous urethane dispersions and polyester polyols. These are components for special polyurethanes, which are used mainly in the construction, mining, oil/gas, sports and electronics industries. For example, rollers for conveyor belts and roller skates are manufactured from these polyurethanes. The urethanes business will be integrated into LANXESS' High Performance Materials segment, in which the high-tech plastics business is anchored. Chemtura is counted among the major companies worldwide in organometallics. Organometallics are chemical compounds that are used, among other things, as catalysts in polymer production and for synthesis of fine chemicals and pharmaceuticals. This business will in the future be part of LANXESS' Advanced Industrial Intermediates business unit.
Original Source: Lanxess, Found on Kimibiz 26 Sep 2016 (Website: http://www.kimibiz.com/ en/), Copyright Lanxess 2016
PPG Comex bullish on Mexico, Central America Net Latin American sales of PPG Comex reached $344 M, in 3Q 2016, down by 6.3% from $367 M. China and Brazil posted over 20% decreases in architectural sales volumes due to regional end-use market weakness. Mexico's architectural coatings sales growth exceeded the country's GDP growth by over 100%. Central America posted a high-double digit growth rate in architectural coatings. Protective coatings sales volumes increased in Asia Pacific, Latin America and the US. Sales volumes of speciality coatings and industrial coatings in Latin America were flat. Near term sales will be supported by the launch of a new Comex distribution centre in Hermosillo, Sonora, Mexico in Aug 2016. The unit can accommodate around 3.5 M L of coatings and paints and its location will decrease delivery time in the country's Northwest region to one day or less from five days. In 2016, around 30
C OAT I N G S stores will be launched in this sub-region out of 170 country-wide. Comex aims to expand Mexican production, The company also intends to build small facilities in Central and South America. Comex holds 50% of the Mexican paint and coatings market, which is increasing at a double digit pace. In 2015, paint volumes expanded by 6%, while sales posted a doubledigit pace.
Original Source: Coatings World, Sep 2016, 21 (9), 46 (Website: http://www.coatingsworld. com) Copyright Rodman Media 2016
EU resumes investigation into DuPont Dow merger deal EU antitrust regulators have resumed their investigation into the $130 billion merger of U. S. chemicals giants Dow Chemical and DuPont after the companies provided data they had been asked for. The European Commission, which halted its scrutiny in early September, will now decide by Feb. 6 whether to approve the deal. Commission spokesman Ricardo Cardoso confirmed in an email that the companies had submitted important information requested by the EU competition enforcer. Dow Chemical and DuPont said they were confident of securing EU approval. "We remain focused on working with the European Commission toward closing the transaction by year-end 2016. In the event that the Commission utilizes the full allotted time, closing would be expected to occur in the early part of 2017, subject to satisfaction of customary closing conditions, including receipt of all regulatory approvals,'' the companies said in a statement. They may have to offer concessions after the Commission opened a full investigation into the case in August, concerned that the deal to create the world's largest integrated crop protection and seeds company might reduce competition in these sectors as well as certain petrochemicals. A preliminary offer from the companies was considered inadequate to resolve the Commission's regulatory concerns. The agricultural chemicals industry has seen a wave of consolidation in recent months as companies bulk up to better compete with each other. The Commission is examining another agrichemicals deal involving ChemChina and Syngenta while German pharmaceutical and crop chemicals manufacturer Bayer AG plans to buy U.S. rival and the world's biggest seeds company Monsanto Co.
Original Source YAHOO Finance, Found on Kimibiz 26 Sep 2016 (Website: http://www. kimibiz.com/en/). Copyright Yahoo, Inc. 2016
Asian Paints rejigs Berger Int’l stake Asian Paints' step-down company Asian Paints (International) Ltd (APL), Mauritius, has transferred all of its 99.18% stake in subsidiary Asian Paints (Lanka) to APL's wholly owned arm, Berger International Private Limited, Singapore. Part of Asian Paints' consolidation
November 2016
INDUSTRY NEWS Evonik constructs specialty polyamide 12 powders production plant Evonik has broken ground in Marl, Germany, for construction of a new production plant for speciality polyamide 12 (PA12) powders. The speciality chemicals company will thus increase annual capacity for its VESTOSINT brand of PA12 powders by 50%. The amount invested lies in the mid-double-digit million euro range. The new plant is scheduled to come on stream by end-2017. VESTOSINT powders are used for coating of metals in household goods such as dishwasher racks, in the automotive industry and in medical technology. VESTOSINT impresses by its high quality, and its processing behaviour and property profile are optimally suited to the relevant 3D printing technology. VESTOSINT is a modified PA12 powder produced from polyamide granules by a special proprietary process at Evonik's Marl site.
Original Source: Evonik, 2016. Found on Coatings World, Sep 2016, 21 (9), 124 (Website: http://www.coatingsworld.com) Copyright Evonik 2016
Arkema expands in powder coating resins in India Arkema announced today plans to construct a new leading class polyester powder resin manufacturing facility, the first of its kind in India, on its existing resin platform in Navi Mumbai, Maharashtra. The project, which represents an investment of approximately $US 15 M and is targeted for completion in 2018, includes a new manufacturing unit and a dedicated new laboratory to provide both application development and technical support. The new facility will support customers in the fast growing powder coating market.
Original Source: Arkema SA, Found on Kimibiz 5 Oct 2016 (Website: http://www.kimibiz.com/ en/). Copyright Arkema SA 2016
LANXESS Announces Plan to Acquire Chemtura LANXESS (FRA: LXS) reaches the next milestone on its growth path: The specialty chemicals company announced plans to acquire US-based Chemtura Corporation (NYSE: CHMT), one of the major global providers of high-quality flame retardant and lubricant additives. With the largest acquisition in its history, LANXESS is building on its own additives portfolio and will become one of the world's major actors in this growing market. The companies have signed a definitive acquisition agreement. Under the terms of the
2
ON
POWDER
agreement, Chemtura shareholders will receive USD 33.50 per share in cash for each outstanding share of common stock held, which represents an 18.9% premium to the stock's closing share price of USD 28.18 on September 23, 2016. The transaction with an enterprise value of approximately € 2.4 billion will be financed by LANXESS mainly through senior and hybrid bonds, as well as from existing liquidity. The transaction, which is expected to close around mid-2017, is subject to approval by Chemtura shareholders, required regulatory approvals and certain other customary closing conditions. Headquartered in Philadelphia, Pennsylvania, Chemtura has 20 sites in 11 countries and approximately 2,500 employees worldwide. The company reported sales of around € 1.5 billion in the last four quarters with EBITDA pre exceptionals of approximately € 245 million (EBITDA margin of approx. 16%). Approximately 45% of Chemtura's revenue is generated in North America. In addition to additives, Chemtura's portfolio includes urethanes and organometallics. Chemtura's urethane business is a major provider for hotcast prepolymers and for special, aqueous urethane dispersions and polyester polyols. These are components for special polyurethanes, which are used mainly in the construction, mining, oil/gas, sports and electronics industries. For example, rollers for conveyor belts and roller skates are manufactured from these polyurethanes. The urethanes business will be integrated into LANXESS' High Performance Materials segment, in which the high-tech plastics business is anchored. Chemtura is counted among the major companies worldwide in organometallics. Organometallics are chemical compounds that are used, among other things, as catalysts in polymer production and for synthesis of fine chemicals and pharmaceuticals. This business will in the future be part of LANXESS' Advanced Industrial Intermediates business unit.
Original Source: Lanxess, Found on Kimibiz 26 Sep 2016 (Website: http://www.kimibiz.com/ en/), Copyright Lanxess 2016
PPG Comex bullish on Mexico, Central America Net Latin American sales of PPG Comex reached $344 M, in 3Q 2016, down by 6.3% from $367 M. China and Brazil posted over 20% decreases in architectural sales volumes due to regional end-use market weakness. Mexico's architectural coatings sales growth exceeded the country's GDP growth by over 100%. Central America posted a high-double digit growth rate in architectural coatings. Protective coatings sales volumes increased in Asia Pacific, Latin America and the US. Sales volumes of speciality coatings and industrial coatings in Latin America were flat. Near term sales will be supported by the launch of a new Comex distribution centre in Hermosillo, Sonora, Mexico in Aug 2016. The unit can accommodate around 3.5 M L of coatings and paints and its location will decrease delivery time in the country's Northwest region to one day or less from five days. In 2016, around 30
C OAT I N G S stores will be launched in this sub-region out of 170 country-wide. Comex aims to expand Mexican production, The company also intends to build small facilities in Central and South America. Comex holds 50% of the Mexican paint and coatings market, which is increasing at a double digit pace. In 2015, paint volumes expanded by 6%, while sales posted a doubledigit pace.
Original Source: Coatings World, Sep 2016, 21 (9), 46 (Website: http://www.coatingsworld. com) Copyright Rodman Media 2016
EU resumes investigation into DuPont Dow merger deal EU antitrust regulators have resumed their investigation into the $130 billion merger of U. S. chemicals giants Dow Chemical and DuPont after the companies provided data they had been asked for. The European Commission, which halted its scrutiny in early September, will now decide by Feb. 6 whether to approve the deal. Commission spokesman Ricardo Cardoso confirmed in an email that the companies had submitted important information requested by the EU competition enforcer. Dow Chemical and DuPont said they were confident of securing EU approval. "We remain focused on working with the European Commission toward closing the transaction by year-end 2016. In the event that the Commission utilizes the full allotted time, closing would be expected to occur in the early part of 2017, subject to satisfaction of customary closing conditions, including receipt of all regulatory approvals,'' the companies said in a statement. They may have to offer concessions after the Commission opened a full investigation into the case in August, concerned that the deal to create the world's largest integrated crop protection and seeds company might reduce competition in these sectors as well as certain petrochemicals. A preliminary offer from the companies was considered inadequate to resolve the Commission's regulatory concerns. The agricultural chemicals industry has seen a wave of consolidation in recent months as companies bulk up to better compete with each other. The Commission is examining another agrichemicals deal involving ChemChina and Syngenta while German pharmaceutical and crop chemicals manufacturer Bayer AG plans to buy U.S. rival and the world's biggest seeds company Monsanto Co.
Original Source YAHOO Finance, Found on Kimibiz 26 Sep 2016 (Website: http://www. kimibiz.com/en/). Copyright Yahoo, Inc. 2016
Asian Paints rejigs Berger Int’l stake Asian Paints' step-down company Asian Paints (International) Ltd (APL), Mauritius, has transferred all of its 99.18% stake in subsidiary Asian Paints (Lanka) to APL's wholly owned arm, Berger International Private Limited, Singapore. Part of Asian Paints' consolidation
November 2016