M&As: EU approves acquisition of Sabic Europe by Aequita; Ancora ups bid for H.B. Fuller's building adhesives biz to US$1.4 bn

The European Commission recently issued a notice approving the acquisition of Sabic Europe, a Dutch subsidiary underchemical firm Sabic, by Germany's Aequita Management for a transaction enterprise value of US$500 million.

The two parties will complete the remaining handover procedures, and the asset handover is expected to be completed in the second half of 2026. After the transaction is completed, Sabic’s European petrochemical bases will be incorporated into an independent operating subsidiary under Aequita.

The European Commission's assessment pointed out that after the completion of this transaction, the combined entity will have a limited market share in the relevant market and will not pose a significant market monopoly risk.

The European petrochemical business sold focuses on the production and sales of ethylene, propylene, low-density polyethylene (LDPE), linear low-density polyethylene (LLDPE), high-density polyethylene (HDPE), polypropylene (PP) and high value-added polymer modified materials. The asset package includes four core production bases located in Teesside, UK, Geleen, Netherlands, Gelsenkirchen, Germany and Genk, Belgium, forming an important olefin and polyolefin production cluster in Europe.

Altogether, the businesses employ around 1,900 people and, according to figures released by Aequita when the deal was announced, generate sales of about US$3.5 billion.

Sabic is divesting its petrochemical business due to factors such as high energy costs in Europe, low-carbon policy constraints, and pressure on profits from basic bulk commodities.

Aequita, is an industrial investment institution that has previously acquired LyondellBasell's European olefin and polyolefin assets, which were transferred to the newly created Velogy. The sites in Berre, Münchsmünster, Carrington and Tarragona include two crackers and polymer plants, employ more than 1,700 people and generate turnover of around EUR2.5 billion.

 Meanwhile in other news, US-based Ancora Holdings Group has upped its bid for H.B. Fuller Co’s building adhesives segment to US$1.2 billion to US$1.4 billion, raising its earlier proposal by US$200 million. Ancora says it has a "highly confident" letter from Fortress Investment Group tied to its ability to provide the required debt financing. After confirming the revised approach following a Bloomberg News report, Ancora says it aims to work anew with H.B. Fuller's independent directors.

Ancora first went public in May pushing H.B. Fuller to drop its planned purchase of the UK's Advanced Medical Solutions Group Plc, calling the deal "extremely risky," and saying it would hold leadership accountable for what it viewed as value destruction.

In August, the activist came back with a cash proposal of around US$1.2 billion for the building adhesives unit. At the time, it contended that carving out the unit would enable H.B. Fuller to reduce debt and concentrate more on integrating Advanced Medical. It also said a sale would take H.B. Fuller out of a low-margin, highly fragmented market and could "solidify a potentially indefinite end to public activism."

H.B. Fuller's board rejected the unsolicited offer on the grounds that the building adhesives business was being valued materially below its worth, that it overlooked the unit's growth potential and strategic importance to the broader adhesives portfolio.

Based in St. Paul, Minnesota, H.B. Fuller’s net income rose 9% year over year for the quarter that concluded in August.

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