Showa Denko and JX Nippon to Buy LyondellBasell’s Stakes in SunAllomer
Singapore: SDK Sunrise Investment
(SSI), owned by Showa Denko (SDK), a leading chemical engineering firm in Japan
and JX Nippon Oil & Energy Corporation, a Japanese petroleum company would
acquire 50% stake of LyondellBasell in polypropylene (PP) producer SunAllomer
Ltd. The two companies planned to execute the acquisition on August 31, 2016. It
is estimated that after this acquisition, an absorption-type merger will take
place amongst SSI and SunAllomer on November 1, 2016 wherein SunAllomer would
be the surviving company. With this acquisition, the partnership between
LyondellBasell and SunAllomer would be maintained. These two companies have
partnership in distinct areas, which includes marketing, sales and technology.
The polypropylene business is a key element for SDK and JX’s olefin chains.
TechSci Research depicts that
the acquisition of additional shares by the two companies would further
strengthen their business relations with SunAllomer Ltd., which in turn would
enhance and expand their polypropylene business in Asia-Pacific countries.
According to the recent report
published by TechSci Research “Asia-Pacific
Masterbatch Market By Type (White, Black, Color and Additive), By Country
(China, India, Indonesia & Others), Competition Forecast and Opportunities,
2011 - 2021”, the
Asia-Pacific masterbatch market is projected to grow at a CAGR of over 9.7%
during 2016-2021. Growth in the market is anticipated on account of increasing
demand from various end user segments, such as packaging, automotive, consumer
appliances, electronics, etc. With a growing number of plastic processing units
in Asia-Pacific region, especially in China and India, the demand for
masterbatches has been increasing at a robust pace, and the same trend is
anticipated to continue over the next five years as well. Apart from plastic
industry, high demand for masterbatches is being witnessed from other
industries, such as packaging, construction, automotive and consumer appliances