M&As: Eneos to acquire TPC; strengthen C4 chemical business; Mutares completes US$450 mn acquisition of Sabic’s ETP biz

Japan’s Eneos Holdings says it has decided to acquire US-based butadiene producer TPC Holdings through its wholly owned US subsidiary, to make TPC a wholly owned subsidiary of Eneos under its High Performance Materials Segment. The deal is expected to close in October 2026, pending regulatory approvals.

The deal will give Eneos Group the world's third-largest butadiene production capacity. TPC is a leading North American producer of butadiene, raffinate, 1-butene and polybutene, holding significant market share across these products with petrochemical operations in Houston, Texas, along with terminal operations in Port Neches, Texas, and Lake Charles, Louisiana. .

The transaction will be implemented through a merger between the special purpose vehicle established under the US subsidiary and TPC, and the parties have entered into a merger agreement.

The business environment surrounding Japan’s domestic materials industry is undergoing significant changes, including declining demand due to population decline and shifts in the competitive landscape. Against this backdrop, the US materials industry is globally competitive, supported by access to low-cost shale gas-based feedstocks, and demand is expected to continue growing.

Eneos adds it has a long-standing track record of safe and stable operations in the C4 chemicals business, including butadiene. It has also expanded material business such as elastomers globally, and has its specialty in high-performance, high-value-added products, such as solution-polymerised styrene-butadiene rubber (S-SBR).

The group has identified the expansion of its C4 chemicals business in the US market and the strengthening of synergies with its materials business as a key growth strategy.

Eneos will, thus, have the world’s third-largest butadiene production capacity. By strengthening its business foundation in butadiene, a key feedstock for the materials business, it aims to enhance its supply capabilities and responsiveness to market fluctuations.

The transaction also contributes to further strengthening supply chain of materials from C4 chemicals to elastomers.

In other news, Munich-based investment firm Mutares SE & Co says it has closed the largest acquisition in its corporate history, snapping up Sabic's Engineering Thermoplastics unit in a transaction valued at US$450 million. The deal marks the launch of a brand-new Chemicals & Materials segment for Mutares, with the acquired business set to operate under the NexPoint Materials banner.

The transaction, announced in January 2026, is part of a broader US$950 million dual-divestiture by Sabic, which simultaneously sold its European Petrochemicals business to fellow Munich firm Aequita for US$500 million.

Commenting on the announcement, Dr. Faisal M. Alfaqeer, Sabic’s CEO/Executive Board Member, said: “Portfolio optimisation constitutes a key priority for Sabic to sharpen its strategic focus and to achieve long-term growth and sustainable profitability whilst maximizing shareholder returns.”

The completion of the divestment of Sabic’s ETP business in the Americas and Europe marks a significant milestone in the company’s portfolio optimisation strategy. The transaction supports Sabic’s continued focus on exiting structurally underperforming assets, reducing cash losses, improving Return on Capital Employed (ROCE), and maximizing long-term shareholder value.

The divested business reported a loss from operations of approximately US$498 million for the year ended 31 December 2025, and approximately US$173 million for the six-month period ended 30 June 2026.

On a pro forma basis, the carve-out of the ETP business has improved Sabic’s EBITDA margin by approximately 130–140 basis points, reflecting the positive impact of the transaction on the company’s overall profitability and portfolio quality.

The completion of this transaction had been subject to customary closing conditions and regulatory approvals.

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