M&As: Petronas Chemicals completes acquisition of silicones supplier; Covestro to sell European PC sheets business to Serafin

M&As: Petronas Chemicals completes acquisition of silicones supplier

Malaysia’s Petronas Chemicals Group Berhad (PCG) has completed the acquisition of Da Vinci Group B.V. (Da Vinci), widely known as BRB, after fulfilling the conditions required in the share purchase agreement to complete the acquisition of 100% of the shares in Da Vinci.

With the completion of the acquisition, Da Vinci has become PCG’s wholly-owned subsidiary with immediate effect. This acquisition marks PCG’s first foray into specialty chemicals.

Da Vinci Group B.V. is a private limited liability company, incorporated in the Netherlands with global operations involving own-brand reselling, formulating and manufacturing of silicones, lube oil additives and chemicals.

Commenting on the acquisition, PCG Managing Director/CEO, Datuk Sazali Hamzah said: “I am pleased that we have completed the acquisition of Da Vinci. It provides a compelling entry point for PCG to grow into silicones business and enhance its competitive position in attractive end-markets such as personal care, construction, paints and coatings, electronics, automotive and healthcare, particularly in the Asia Pacific region.”

“Venturing into specialty chemicals beyond existing assets allows us to diversify our product portfolio and future-proof our business”, he concluded.

PCG is an integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites, which are fully vertically integrated from feedstock to downstream end-products. With a total combined production capacity of 12.8 million tonnes/year, it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products. Listed on Bursa Malaysia and with three decades of experience in the chemicals industry, PCG is established as part of the Petronas Group to maximise value from Malaysia’s natural gas resources.

Meanwhile in other news, German materials manufacturer Covestro has signed an agreement with Serafin Group for the sale of Covestro’s European polycarbonate (PC) sheets business, which comprises manufacturing units in Belgium and Italy, central management operations and sales support in Europe. The business generates total revenues of around EUR130 million (2018).

PC sheets are highly break-resistant and are mostly used in industrial protection, construction systems or signage applications.

The decision was made as part of Covestro’s ongoing portfolio optimisation process, which includes the divestment of all PC sheets businesses. The sale of the European outlets thus concludes the previous divestments of the respective facilities in North America and India in 2018, and the conversion of its production in Guangzhou, China, into a specialty films site.

After a thorough evaluation, Covestro has decided that the sheets business no longer fits in the strategy of its PC segment in the long run. In the future, the segment will continue to focus on differentiated applications. Covestro and Serafin have agreed not to disclose financial details of the transaction. The completion of the transaction is subject to the approval of the relevant antitrust authorities. The closing is expected for the fourth quarter of 2019.

Munich-based Serafin Group concentrates on investments in established, small and mid-sized companies in industrial business sectors. Based on the strong market position of the PC sheets business, Serafin says it aims to strengthen the business as a mid-sized company with high flexibility and a strong customer orientation. The operations, which involve 250 employees, will be maintained at all sites. Covestro will continue to serve as the key raw materials supplier for the foreseeable future.


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