Celanese has reached a definitive agreement to sell its 45 % stake in Polyplastics to its joint venture partner Daicel for USD 1.575 billion, making Daicel sole owner.
The transaction is expected to be finalized in the second half of this fiscal year, subject to necessary regulatory approvals and customary closing conditions.
"We plan to use this opportunity to monetize a historically passive investment and allocate significant capital to higher growth businesses within Celanese," said Celanese Chairman and Chief Executive Lori Ryerkerk.
"This definitive agreement with Daicel is an intentional departure from a legacy relationship to a contemporary approach, which will drive future growth and greater customer development and expansion opportunities," Celanese noted. "Celanese will continue to compete with Polyplastics (Daicel) in markets and regions where there is overlapping product lines."
Source: Weekly “PetroChemical News”, Durham, NC, USA; 27 July 2020
(Syed Rashid Ali, Karachi, Pakistan)