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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

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