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Univar partners with Novozymes
F O C US are both industry leaders on our own, and we will be even stronger and even better together. We are ready to get on with the integration.” P&G said it expected to raise its proceeds by 2% in Oct 2005 as a result of the acquisition, with revenue growth, excluding foreign exchange effects, of 5-7% expected in each of the years remaining in the decade, up from an earlier estimate of 4-6%. The estimate is in line with the predictions of independent analysts. Gillette has 96 M shares held by the holding company Berkshire Hathaway (BH) (USA), which represents a sum of more than $5 bn at the share price of $54/piece. BH is owned by the billionaire Warren Buffett, who intends to increase his stake in the merged firm up to 100 M shares. Press release from: Procter & Gamble Co, 1 or 2, Procter & Gamble Plaza, Cincinnati, OH 45201, USA. Tel: +1 513 983 1100. Website: http://www.pg.com (30 Sep 2005) & Hospodarske Noviny, 3 Oct 2005, 49 (192), 21 (in Czech)
Bidders line up for Kanebo Around 20 companies have handed in initial bids to acquire Japanese household products and cosmetics company Kanebo. Johnson & Johnson, Kao [see also Focus on Surfactants, Sep 2005 & Apr 2004], L’Oreal, Procter & Gamble and Revlon are among the bidders. These are likely to have submitted joint bids with private equity capital companies. An asking price of around Yen 400 bn is expected for Kanebo, which had sales of Yen 195.2 bn in 2004. Kao had expressed interest in buying Kanebo’s cosmetics division back as far as late 2003. However, the bid last year [ibid, Apr 2004] was scuppered at the last minute, after spiralling debt following five years of losses meant the intervention of Industrial Revitalisation Corp Japan (IRC) – a government-backed body that helps companies in financial difficulty to get back on their feet. Currently IRC owns a 51% controlling stake in Kanebo and an 86% stake in its cosmetics division. The body has invested significant sums in Kanebo, but as the company starts to regain some of its financial stability the bidding process for these stakes is ready to be undertaken. The winning bidder will gain control of both the household and cosmetics divisions of Kanebo. However, as the number of NOVEMBER 2005
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major cosmetics companies involved in the process would indicate, the primary interest revolves around the company’s more profitable cosmetics operations. This gives analysts reason to believe that there is a strong possibility the household business operations will then be sold after the company is bought up. The IRC, which is overseeing the bidding, has said that it will not give out any information about the bidding process until the process is finalized at the end of the year. Chemical Week, 24/31 Aug 2005, 167 (28), 19 (Website: http://www.chemweek.com)
Colgate-Palmolive to raise per-share profit 6-10% in 2005 US-based household chemicals and cosmetics company ColgatePalmolive is expected to raise its pershare profit by 6-10% year-on-year in 2005, according to bank experts. The restructuring it is undergoing is estimated to save the company costs of up to $300 M/y. Within the process, Colgate-Palmolive will close one third of its plants and dismiss up to 4400 employees. The firm is the world’s largest toothpaste producer. Hospodarske Noviny, 14 Sep 2005, 49 (180), 18 (in Czech)
Focus reports: staying a step ahead Huntsman Corp is repositioning itself in the global petrochemical industry to enable the company to benefit from the impending upcycle and minimize the negative impact of reduced margins in some products like polyethylene and ethylene glycol. Huntsman forecasts that markets for amines, polypropylene and methylene diphenyl diisocyanate will remain stable. Huntsman is aiming to increase its portfolio of downstream derivative products like ethylene oxide, amines and surfactants derivatives. Huntsman has been impacted by Hurricane Katrina [and by Hurricane Rita, see below] and is working to recover margins. Chemical Market Reporter, 19 Sep 2005 (Website: http://www.chemicalmarketreporter.com)
Huntsman operations suspended at all Gulf Coast facilities Huntsman Corp suspended operations at its Texas Gulf Coast facilities in
anticipation of Hurricane Rita. This included manufacturing facilities in Port Arthur, Port Neches, Conroe, Freeport, Chocolate Bayou and Dayton, TX. The company also evacuated its headquarters and research and technology centre in the Woodlands, TX. About 2000 employees work at these locations. This action impacted the production of ethylene, propylene, cyclohexane, butadiene, propylene oxide, MTBE, surfactants, amines and ethylene glycol. Facilities at Lake Charles and Geismar in Louisiana were also closed. All other facilities in North America remained operational. Following the hurricane, Huntsman reported no serious structural damage to any of the facilities and most were expected to be on-line again within a week. However, Port Arthur (PO/MTBE & ethylene), Port Neches (butadiene) and Lake Charles (titanium dioxide pigments) were all near the eye of the category 3 storm when it came ashore and were without power and other utilities as a result, delaying restarts for some weeks. Press releases from: Huntsman Corp, 3040, Post Oak Boulevard, Houston, TX 77056, USA. Tel: +1 713 235 6000. Fax: +1 713 235 6416. Website: http://www.huntsman.com (23 & 27 Sep 2005)
Procter & Gamble and Eli Lilly jointly sponsor YourEncore.com Procter & Gamble (P&G) (USA), cleaning agents company, and the pharmaceutical firm Eli Lilly (USA) jointly sponsor the contracting agency YourEncore.com. The agency focuses on hiring retired researchers, engineers and development experts. This is how P&G and Eli Lilly get access to experienced experts they can use according to their needs. Ekonom, 8 Sep 2005, 49 (36), 22 (in Czech)
Univar partners with Novozymes Novozymes of Denmark has consolidated its distribution arrangements in a deal with Univar that covers Europe. Univar will distribute detergent and textile enzymes to 14 countries in the region. In 2006, distribution will be extended to cover Switzerland and Germany. European Chemical News, 19 Sep 2005, 83 (2163), 14
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Bidders line up for Kanebo Around 20 companies have handed in initial bids to acquire Japanese household products and cosmetics company Kanebo. Johnson & Johnson, Kao [see also Focus on Surfactants, Sep 2005 & Apr 2004], L’Oreal, Procter & Gamble and Revlon are among the bidders. These are likely to have submitted joint bids with private equity capital companies. An asking price of around Yen 400 bn is expected for Kanebo, which had sales of Yen 195.2 bn in 2004. Kao had expressed interest in buying Kanebo’s cosmetics division back as far as late 2003. However, the bid last year [ibid, Apr 2004] was scuppered at the last minute, after spiralling debt following five years of losses meant the intervention of Industrial Revitalisation Corp Japan (IRC) – a government-backed body that helps companies in financial difficulty to get back on their feet. Currently IRC owns a 51% controlling stake in Kanebo and an 86% stake in its cosmetics division. The body has invested significant sums in Kanebo, but as the company starts to regain some of its financial stability the bidding process for these stakes is ready to be undertaken. The winning bidder will gain control of both the household and cosmetics divisions of Kanebo. However, as the number of NOVEMBER 2005
O N
S U R FA C TA N T S
major cosmetics companies involved in the process would indicate, the primary interest revolves around the company’s more profitable cosmetics operations. This gives analysts reason to believe that there is a strong possibility the household business operations will then be sold after the company is bought up. The IRC, which is overseeing the bidding, has said that it will not give out any information about the bidding process until the process is finalized at the end of the year. Chemical Week, 24/31 Aug 2005, 167 (28), 19 (Website: http://www.chemweek.com)
Colgate-Palmolive to raise per-share profit 6-10% in 2005 US-based household chemicals and cosmetics company ColgatePalmolive is expected to raise its pershare profit by 6-10% year-on-year in 2005, according to bank experts. The restructuring it is undergoing is estimated to save the company costs of up to $300 M/y. Within the process, Colgate-Palmolive will close one third of its plants and dismiss up to 4400 employees. The firm is the world’s largest toothpaste producer. Hospodarske Noviny, 14 Sep 2005, 49 (180), 18 (in Czech)
Focus reports: staying a step ahead Huntsman Corp is repositioning itself in the global petrochemical industry to enable the company to benefit from the impending upcycle and minimize the negative impact of reduced margins in some products like polyethylene and ethylene glycol. Huntsman forecasts that markets for amines, polypropylene and methylene diphenyl diisocyanate will remain stable. Huntsman is aiming to increase its portfolio of downstream derivative products like ethylene oxide, amines and surfactants derivatives. Huntsman has been impacted by Hurricane Katrina [and by Hurricane Rita, see below] and is working to recover margins. Chemical Market Reporter, 19 Sep 2005 (Website: http://www.chemicalmarketreporter.com)
Huntsman operations suspended at all Gulf Coast facilities Huntsman Corp suspended operations at its Texas Gulf Coast facilities in
anticipation of Hurricane Rita. This included manufacturing facilities in Port Arthur, Port Neches, Conroe, Freeport, Chocolate Bayou and Dayton, TX. The company also evacuated its headquarters and research and technology centre in the Woodlands, TX. About 2000 employees work at these locations. This action impacted the production of ethylene, propylene, cyclohexane, butadiene, propylene oxide, MTBE, surfactants, amines and ethylene glycol. Facilities at Lake Charles and Geismar in Louisiana were also closed. All other facilities in North America remained operational. Following the hurricane, Huntsman reported no serious structural damage to any of the facilities and most were expected to be on-line again within a week. However, Port Arthur (PO/MTBE & ethylene), Port Neches (butadiene) and Lake Charles (titanium dioxide pigments) were all near the eye of the category 3 storm when it came ashore and were without power and other utilities as a result, delaying restarts for some weeks. Press releases from: Huntsman Corp, 3040, Post Oak Boulevard, Houston, TX 77056, USA. Tel: +1 713 235 6000. Fax: +1 713 235 6416. Website: http://www.huntsman.com (23 & 27 Sep 2005)
Procter & Gamble and Eli Lilly jointly sponsor YourEncore.com Procter & Gamble (P&G) (USA), cleaning agents company, and the pharmaceutical firm Eli Lilly (USA) jointly sponsor the contracting agency YourEncore.com. The agency focuses on hiring retired researchers, engineers and development experts. This is how P&G and Eli Lilly get access to experienced experts they can use according to their needs. Ekonom, 8 Sep 2005, 49 (36), 22 (in Czech)
Univar partners with Novozymes Novozymes of Denmark has consolidated its distribution arrangements in a deal with Univar that covers Europe. Univar will distribute detergent and textile enzymes to 14 countries in the region. In 2006, distribution will be extended to cover Switzerland and Germany. European Chemical News, 19 Sep 2005, 83 (2163), 14
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