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Released on 28/11/12
Norwest Equity Partners has sold Iowa seed treatment developer Becker Underwood Inc. for $1.02 billion.The sale to German chemical company BASF closed on November 21. Norwest Equity Partners (NEP), a Minneapolis-based middle market investment firm that is San Francisco-based Wells Fargo & Co.'s (NYSE: WFC) private equity unit, bought a majority stake in Becker Underwood in 2004.Since then, Becker Underwood "increased revenue and profitability four-fold, completed eight strategic add-on acquisitions, and doubled its number of employees across the world," NEP said in a news release.Becker Underwood was founded in 1982 with only one product — an agricultural marking dye called Spray Tracer. The company, based in Ames, Iowa, reported $246 million in revenue in the year ended Sept. 30.Becker Underwood will be what BASF called "the cornerstone" of its new Functional Crop Care unit."From guidance on both organic and acquisitive growth strategies, operational insights, and the commitment of capital and global resources, NEP helped build us into a global leader and provider of innovative, biological solutions for a wide array of crops across multiple geographies," Becker Underwood CEO Peter Innes said in a statement. "The firm has been instrumental to our success and helped position us for our successful sale to BASF."
Source Minneapolis/St. Paul Business Journal Online
Norwest Equity Partners has sold Iowa seed treatment developer Becker Underwood Inc. for $1.02 billion.The sale to German chemical company BASF closed on November 21. Norwest Equity Partners (NEP), a Minneapolis-based middle market investment firm that is San Francisco-based Wells Fargo & Co.'s (NYSE: WFC) private equity unit, bought a majority stake in Becker Underwood in 2004.Since then, Becker Underwood "increased revenue and profitability four-fold, completed eight strategic add-on acquisitions, and doubled its number of employees across the world," NEP said in a news release.Becker Underwood was founded in 1982 with only one product — an agricultural marking dye called Spray Tracer. The company, based in Ames, Iowa, reported $246 million in revenue in the year ended Sept. 30.Becker Underwood will be what BASF called "the cornerstone" of its new Functional Crop Care unit."From guidance on both organic and acquisitive growth strategies, operational insights, and the commitment of capital and global resources, NEP helped build us into a global leader and provider of innovative, biological solutions for a wide array of crops across multiple geographies," Becker Underwood CEO Peter Innes said in a statement. "The firm has been instrumental to our success and helped position us for our successful sale to BASF."
Source Minneapolis/St. Paul Business Journal Online
Released on 06/12/12
Mexico’s production of low density polyethylene (LDPE) has diminished because of a rationalisation of ethylene at Pemex plants, a source with the company said on Thursday.One of three 100,000 tonne/year LDPE trains at the Cangrejera facility remains down in December because of a lack of ethylene and is scheduled to restart next week.The Cangrejera plant has three trains with a total capacity of 300,000 tonnes/year. Production is normal at two of those trains.Despite the stoppage, supply of LDPE is normal in Mexico because of softer demand at the end of the year. However, exports of this grade are affected.There is some erosion of import prices detected in Mexico, as suppliers compete to place volumes with reticent buyers.Mexico’s LDPE prices are in the range of $1,446-1,562/tonne (€1,099-1,187/tonne) FOT (free on truck), based on ICIS data.
Source ICIS News
Mexico’s production of low density polyethylene (LDPE) has diminished because of a rationalisation of ethylene at Pemex plants, a source with the company said on Thursday.One of three 100,000 tonne/year LDPE trains at the Cangrejera facility remains down in December because of a lack of ethylene and is scheduled to restart next week.The Cangrejera plant has three trains with a total capacity of 300,000 tonnes/year. Production is normal at two of those trains.Despite the stoppage, supply of LDPE is normal in Mexico because of softer demand at the end of the year. However, exports of this grade are affected.There is some erosion of import prices detected in Mexico, as suppliers compete to place volumes with reticent buyers.Mexico’s LDPE prices are in the range of $1,446-1,562/tonne (€1,099-1,187/tonne) FOT (free on truck), based on ICIS data.
Source ICIS News
Released on 07/12/12
Shell has declared force majeure on ethylene after shutting down a segment of a pipeline in Louisiana because of a leak, the company said on Thursday."This incident has caused us to declare force majeure on ethylene supply to our customers east of Lake Charles, Louisiana," a spokesperson said.The details on the length and depth of the restriction were not yet available, a market participant said.Shell was also heard to have shut down its olefins Norco complex in Louisiana because it could not ship ethylene out of the facility.The spokesperson declined to comment on the operational status of the facility, citing policy.Shell has two crackers in Louisiana with a combined 1.42m tonnes/year of ethylene capacity.
Source ICIS News
Shell has declared force majeure on ethylene after shutting down a segment of a pipeline in Louisiana because of a leak, the company said on Thursday."This incident has caused us to declare force majeure on ethylene supply to our customers east of Lake Charles, Louisiana," a spokesperson said.The details on the length and depth of the restriction were not yet available, a market participant said.Shell was also heard to have shut down its olefins Norco complex in Louisiana because it could not ship ethylene out of the facility.The spokesperson declined to comment on the operational status of the facility, citing policy.Shell has two crackers in Louisiana with a combined 1.42m tonnes/year of ethylene capacity.
Source ICIS News
Released on 29/11/12
Motiva could begin the restart process of the expansion project at its Port Arthur refinery in Texas next week after repairing a crude unit, a company spokesperson said on Thursday. “Repairs to the crude distillation unit (CDU) at the Motiva Port Arthur expansion are going well. We expect to turn over the unit to operations by end November-early December, which will begin the process to safely restart the unit,” said Shell spokesperson Kayla Macke. The 325,000 bbl/day expansion project at the refinery was stalled when the CDU went off line after a failed weekend start-up attempt on 9-10 June and was originally expected to be off line for two to five months.“We are still targeting early 2013 for restart, as planned,” Macke said.Motiva is a joint venture by Saudi Aramco and Shell.
Source ICIS News
Motiva could begin the restart process of the expansion project at its Port Arthur refinery in Texas next week after repairing a crude unit, a company spokesperson said on Thursday. “Repairs to the crude distillation unit (CDU) at the Motiva Port Arthur expansion are going well. We expect to turn over the unit to operations by end November-early December, which will begin the process to safely restart the unit,” said Shell spokesperson Kayla Macke. The 325,000 bbl/day expansion project at the refinery was stalled when the CDU went off line after a failed weekend start-up attempt on 9-10 June and was originally expected to be off line for two to five months.“We are still targeting early 2013 for restart, as planned,” Macke said.Motiva is a joint venture by Saudi Aramco and Shell.
Source ICIS News
Released on 06/12/12
Taiwan’s CPC Corp is eyeing a turnaround at its new residual fluid catalytic cracker (RFCC) at its Dalin refinery at the end of April 2013, a company source said on Thursday.The turnaround will take place at end-April and the shutdown will last around two months, the source said.The new RFCC was started up in early November this year and can produce 400,000-450,000 tonnes/year of propylene.
Source ICIS News
Taiwan’s CPC Corp is eyeing a turnaround at its new residual fluid catalytic cracker (RFCC) at its Dalin refinery at the end of April 2013, a company source said on Thursday.The turnaround will take place at end-April and the shutdown will last around two months, the source said.The new RFCC was started up in early November this year and can produce 400,000-450,000 tonnes/year of propylene.
Source ICIS News
Released on 29/11/12
Mitsui Chemicals decided to withdraw from the resorcinol business following the accident that occurred in April at its Iwakuni-Ohtake plant. Explanation of its plan to customers was begun in the middle of this month.The company and Sumitomo Chemical are the only producers in Japan of resorcinol, an adhesive for wood and tires. After Mitsui's exit, Sumitomo will be the sole remaining producer, but with the depressed state of the Japanese economy of late, the impact on supply to domestic users is expected to be minimal.The explosion and fire in the Iwakuni-Ohtake plant in Yamaguchi Prefecture originated at the resorcinol production facility. Instead of resurrecting the facility, Mitsui will cease sales once its current inventory is exhausted and said that the manufacture of other products at the plant would be unaffected.The decision leaves only the cymene and hydroquinone facilities to be restarted, as all the other production facilities at the site are back in operation. The hydroquinone facility underwent an on-the-spot inspection on November 26 by relevant authorities as part of a program for plant improvements submitted by Mitsui. If the program is approved, construction in accordance with the program will be carried out, followed by the submission of a report and another inspection by the authorities, after which a restart will be targeted. Mitsui plans to reconstruct the cymene facility.
Source Japan Chemical Web
Mitsui Chemicals decided to withdraw from the resorcinol business following the accident that occurred in April at its Iwakuni-Ohtake plant. Explanation of its plan to customers was begun in the middle of this month.The company and Sumitomo Chemical are the only producers in Japan of resorcinol, an adhesive for wood and tires. After Mitsui's exit, Sumitomo will be the sole remaining producer, but with the depressed state of the Japanese economy of late, the impact on supply to domestic users is expected to be minimal.The explosion and fire in the Iwakuni-Ohtake plant in Yamaguchi Prefecture originated at the resorcinol production facility. Instead of resurrecting the facility, Mitsui will cease sales once its current inventory is exhausted and said that the manufacture of other products at the plant would be unaffected.The decision leaves only the cymene and hydroquinone facilities to be restarted, as all the other production facilities at the site are back in operation. The hydroquinone facility underwent an on-the-spot inspection on November 26 by relevant authorities as part of a program for plant improvements submitted by Mitsui. If the program is approved, construction in accordance with the program will be carried out, followed by the submission of a report and another inspection by the authorities, after which a restart will be targeted. Mitsui plans to reconstruct the cymene facility.
Source Japan Chemical Web
Released on 29/11/12
Iran’s Kavian Petrochemicals has started up its 1m tonne/year ethane cracker in Bushehr this month, a source close to the company said on Thursday.“The cracker began the start-up process of the first phase in early November and on-spec ethylene should be achieved within this month,” the source said.The cracker was initially scheduled to come on stream in July 2012. No reason was provided for the delay in actual start-up of the ethylene plant.The second phase of the project – in which the cracker capacity will be doubled to 2m tonnes/year – is expected to start up at the end of 2013.
Source ICIS News
Iran’s Kavian Petrochemicals has started up its 1m tonne/year ethane cracker in Bushehr this month, a source close to the company said on Thursday.“The cracker began the start-up process of the first phase in early November and on-spec ethylene should be achieved within this month,” the source said.The cracker was initially scheduled to come on stream in July 2012. No reason was provided for the delay in actual start-up of the ethylene plant.The second phase of the project – in which the cracker capacity will be doubled to 2m tonnes/year – is expected to start up at the end of 2013.
Source ICIS News
Released on 06/12/12
Sinopec Maoming has expanded its refining capacity to 20m tonne/year (400,000 bbl/day), following achievement of on-spec oil products from its new 10m tonne/year crude distillation unit (CDU) at Maoming in Guangdong province on 5 December, its parent Sinopec said on Thursday.The company has existing refining capacity in excess of 13m tonne/year but intends to idle some of it, sources said.The company started construction of the new CDU in May 2011 and completed it on 30 November this year, Sinopec said in a statement. The expansion ensures the company to self-supply naphtha and other feedstocks for its 1m tonne/year cracker at the same site.
Source ICIS News
Sinopec Maoming has expanded its refining capacity to 20m tonne/year (400,000 bbl/day), following achievement of on-spec oil products from its new 10m tonne/year crude distillation unit (CDU) at Maoming in Guangdong province on 5 December, its parent Sinopec said on Thursday.The company has existing refining capacity in excess of 13m tonne/year but intends to idle some of it, sources said.The company started construction of the new CDU in May 2011 and completed it on 30 November this year, Sinopec said in a statement. The expansion ensures the company to self-supply naphtha and other feedstocks for its 1m tonne/year cracker at the same site.
Source ICIS News
Released on 27/11/12
Cheil Industries, an affiliate of South Korean conglomerate Samsung Group, plans to expand its acrylonitrile-butadiene-styrene (ABS) production capacity in Yeosu by about 20% in March next year, a source close to the company said on Tuesday.The facility currently has an ABS capacity of 460,000 tonnes/year.“The expansion will increase the [plant’s] ABS capacity by 90,000 tonnes per year to around 550,000 tonnes per year,” the source said.The expansion is slated to begin in early March next year and is expected to be completed by the end of that month, the source said.Cheil Industries also produces around 40,000 tonnes per year of styrene-acrylonitrile (SAN) resins.Other Korean ABS manufacturers include LG Chem and Kumho Petrochemical.
Source ICIS News
Cheil Industries, an affiliate of South Korean conglomerate Samsung Group, plans to expand its acrylonitrile-butadiene-styrene (ABS) production capacity in Yeosu by about 20% in March next year, a source close to the company said on Tuesday.The facility currently has an ABS capacity of 460,000 tonnes/year.“The expansion will increase the [plant’s] ABS capacity by 90,000 tonnes per year to around 550,000 tonnes per year,” the source said.The expansion is slated to begin in early March next year and is expected to be completed by the end of that month, the source said.Cheil Industries also produces around 40,000 tonnes per year of styrene-acrylonitrile (SAN) resins.Other Korean ABS manufacturers include LG Chem and Kumho Petrochemical.
Source ICIS News
Released on 06/12/12
The European Chemical Industry Council (Cefic) has slashed its output forecasts for industry in 2012 and 2013 in Europe on the back of a stagnant economy and weak performances from key end markets, it said on Thursday.The industry body predicts that European chemicals output will contract by 2.0% in 2012 compared to 2011, and will expand by 0.5% in 2013.The move represents the association’s latest downgrade of its output forecasts for the European chemicals industry. Cefic predicted in September that industry output would contract by 1.5% in 2012, down from earlier estimates that output would be static year on year, and that output would increase by 1% in 2013.The EU automotive and construction industries – key markets for chemical producers – have been depressed during the year as a result of sluggish demand for new cars and overcapacity issues in the building industry, Cefic said. Several government-backed incentive schemes to encourage the purchase of new cars have also now run their course, the association added.Cefic president and BASF CEO Kurt Bock said: “The EU chemicals sector faces increasing uncertainty as the domestic market continues to struggle and overseas competition remains relentless. EU policymakers need to continue to work towards putting Europe on a better economic footing to help us move out of this difficult period.”EU chemicals production is likely to remain 8% below pre-recession levels in 2012, Cefic said, while volatile oil and naphtha prices have caused uncertainty in the petrochemicals industry as buyers and sellers seek to optimise inventory levels.Slowing growth in China, Japan’s fall back into economic contraction, and uncertainty over the US “fiscal cliff”- a raft of budget cuts and tax increases set to come into effect in the new year – are key international factors exacerbating Europe’s economic malaise, according to the association. The prevalence of shale gas in the US and the resultant fall in energy costs also presents a longer-term threat to the competitiveness of the European chemicals industry, it added.
Source ICIS News
The European Chemical Industry Council (Cefic) has slashed its output forecasts for industry in 2012 and 2013 in Europe on the back of a stagnant economy and weak performances from key end markets, it said on Thursday.The industry body predicts that European chemicals output will contract by 2.0% in 2012 compared to 2011, and will expand by 0.5% in 2013.The move represents the association’s latest downgrade of its output forecasts for the European chemicals industry. Cefic predicted in September that industry output would contract by 1.5% in 2012, down from earlier estimates that output would be static year on year, and that output would increase by 1% in 2013.The EU automotive and construction industries – key markets for chemical producers – have been depressed during the year as a result of sluggish demand for new cars and overcapacity issues in the building industry, Cefic said. Several government-backed incentive schemes to encourage the purchase of new cars have also now run their course, the association added.Cefic president and BASF CEO Kurt Bock said: “The EU chemicals sector faces increasing uncertainty as the domestic market continues to struggle and overseas competition remains relentless. EU policymakers need to continue to work towards putting Europe on a better economic footing to help us move out of this difficult period.”EU chemicals production is likely to remain 8% below pre-recession levels in 2012, Cefic said, while volatile oil and naphtha prices have caused uncertainty in the petrochemicals industry as buyers and sellers seek to optimise inventory levels.Slowing growth in China, Japan’s fall back into economic contraction, and uncertainty over the US “fiscal cliff”- a raft of budget cuts and tax increases set to come into effect in the new year – are key international factors exacerbating Europe’s economic malaise, according to the association. The prevalence of shale gas in the US and the resultant fall in energy costs also presents a longer-term threat to the competitiveness of the European chemicals industry, it added.
Source ICIS News
Released on 27/11/12
Mitsui Chemicals will withdraw from the market for a chemical found in tires rather than spend the billions of yen needed to rebuild a factory destroyed by an explosion in April.The company has lost business since the blast as customers found alternate sources and sees little chance of regaining it. Besides, the market has been slumping.The Iwakuni-Ohtake works in Yamaguchi Prefecture made resorcinol, used as a strengthner in tires and a UV absorber in plastics, and had an annual production capacity of 7,600 tons. With it, Mitsui Chemicals supplied a little more than 10% of the 60,000 tons of annual global demand for the chemical.The blast, caused partly by an operating error, ruined the resorcinol plant at the works. Mitsui Chemicals has decided against rebuilding it and will soon inform local officials and customers. It will reassign workers and take other steps to maintain their jobs.Mitsui Chemicals' withdrawal from resorcinol production will leave Sumitomo Chemical Co. (4005) as the lone domestic supplier facing off against American rival Indspec Chemical Corp. in the global market.The explosion also damaged nearby facilities that produce hydroquinone, which serves as raw material for synthetic fibers, and cymene, a chemical essential for making LCDs and cars. Mitsui Chemicals has begun making cymene a plant in Chiba Prefecture instead.The firm is forecasting a 5 billion yen group net profit for the year ending next March. While it was insured against most of the losses from the explosion, it sees the accident wiping out about 6 billion yen in profit.
Source Nikkei Report
Mitsui Chemicals will withdraw from the market for a chemical found in tires rather than spend the billions of yen needed to rebuild a factory destroyed by an explosion in April.The company has lost business since the blast as customers found alternate sources and sees little chance of regaining it. Besides, the market has been slumping.The Iwakuni-Ohtake works in Yamaguchi Prefecture made resorcinol, used as a strengthner in tires and a UV absorber in plastics, and had an annual production capacity of 7,600 tons. With it, Mitsui Chemicals supplied a little more than 10% of the 60,000 tons of annual global demand for the chemical.The blast, caused partly by an operating error, ruined the resorcinol plant at the works. Mitsui Chemicals has decided against rebuilding it and will soon inform local officials and customers. It will reassign workers and take other steps to maintain their jobs.Mitsui Chemicals' withdrawal from resorcinol production will leave Sumitomo Chemical Co. (4005) as the lone domestic supplier facing off against American rival Indspec Chemical Corp. in the global market.The explosion also damaged nearby facilities that produce hydroquinone, which serves as raw material for synthetic fibers, and cymene, a chemical essential for making LCDs and cars. Mitsui Chemicals has begun making cymene a plant in Chiba Prefecture instead.The firm is forecasting a 5 billion yen group net profit for the year ending next March. While it was insured against most of the losses from the explosion, it sees the accident wiping out about 6 billion yen in profit.
Source Nikkei Report
Released on 06/12/12
South Korea’s Honam Petrochemical has bought 50,000 tonnes of spot naphtha supply for delivery to Daesan in the first half of January amid full cracker operating capacity, traders said on Thursday.The deals for the cargoes were done at a premium of $12.50/tonne (€10/tonne) to Japan quotes CFR (cost & freight), they added.In its previous spot purchase, Honam bought 100,000 tonnes of spot naphtha supply for delivery to Yeosu and Daesan in the first half of January, at a premium of $9.50/tonne (€7.30/tonne) to Japan quotes CFR. The market premiums rebounded slightly as there will be less arbitrage material in January, traders said. Meanwhile, Honam is operating its 1m tonne/year cracker in Yeosu and a separate 1.07m tonne/year cracker in Daesan at 100% capacity, they added.“So long as Honam can cover variable cost in entirety, they will keep running at full capacity,” one trader said.
Source ICIS News
South Korea’s Honam Petrochemical has bought 50,000 tonnes of spot naphtha supply for delivery to Daesan in the first half of January amid full cracker operating capacity, traders said on Thursday.The deals for the cargoes were done at a premium of $12.50/tonne (€10/tonne) to Japan quotes CFR (cost & freight), they added.In its previous spot purchase, Honam bought 100,000 tonnes of spot naphtha supply for delivery to Yeosu and Daesan in the first half of January, at a premium of $9.50/tonne (€7.30/tonne) to Japan quotes CFR. The market premiums rebounded slightly as there will be less arbitrage material in January, traders said. Meanwhile, Honam is operating its 1m tonne/year cracker in Yeosu and a separate 1.07m tonne/year cracker in Daesan at 100% capacity, they added.“So long as Honam can cover variable cost in entirety, they will keep running at full capacity,” one trader said.
Source ICIS News
Released on 06/12/12
The pharma industry is getting less and less return on investment in R&D, according to a report. But the trend seems to be bottoming out and – on a more positive note – there are more compounds going into late stage development.Consultants Deloitte and data firm Thomson Reuters looked at twelve pharma companies and estimated the projected financial returns from the R&D investment in their late stage pipeline, comprising products that are in Phase III trials, but have yet to be approved for marketing.They found that the return fell from 7.7% in 2010–11 to 7.2% in 2011–12, but the number of number of compounds entering the late stage pipeline more than doubled from 35 to 78.Overall, the results present a mixed bag for the optimists. The number of approvals increased from 32 to 41, but the total forecast sales of all approvals fell by a third, from $309 billion (£192 billion) to $211 billion. Meanwhile, the total forecast sales of candidates in late stage pipelines declined from $1,370 billion in 2010 to $1,050 billion in 2012.
Source RSC (Chemistry World)
The pharma industry is getting less and less return on investment in R&D, according to a report. But the trend seems to be bottoming out and – on a more positive note – there are more compounds going into late stage development.Consultants Deloitte and data firm Thomson Reuters looked at twelve pharma companies and estimated the projected financial returns from the R&D investment in their late stage pipeline, comprising products that are in Phase III trials, but have yet to be approved for marketing.They found that the return fell from 7.7% in 2010–11 to 7.2% in 2011–12, but the number of number of compounds entering the late stage pipeline more than doubled from 35 to 78.Overall, the results present a mixed bag for the optimists. The number of approvals increased from 32 to 41, but the total forecast sales of all approvals fell by a third, from $309 billion (£192 billion) to $211 billion. Meanwhile, the total forecast sales of candidates in late stage pipelines declined from $1,370 billion in 2010 to $1,050 billion in 2012.
Source RSC (Chemistry World)
Released on 05/12/12
Taiwan’s TSRC will continue running its 100,000 tonne/year styrene butadiene rubber (SBR) plant in Kaohsiung at 80% of capacity throughout December because of prevailing weak market conditions, a company source said on Wednesday.The plant operated at the same reduced rate last month, the source said.Abundant supply and weak demand have been depressing SBR prices in recent months.Non-oil grade 1502 SBR prices were assessed at $2,200-2,300/tonne (€1,672-1,748/tonne) CIF (cost, insurance and freight) China in the week ended 28 November, down by $200/tonne from 31 October levels, according to ICIS.Falling prices of feedstock butadiene (BD) have been aggravating the pressure on SBR values.BD prices shed about $250/tonne since 2 November to $1,450-1,490/tonne CFR (cost and freight) northeast (NE) Asia on 28 November, ICIS data showed.
Source ICIS News
Taiwan’s TSRC will continue running its 100,000 tonne/year styrene butadiene rubber (SBR) plant in Kaohsiung at 80% of capacity throughout December because of prevailing weak market conditions, a company source said on Wednesday.The plant operated at the same reduced rate last month, the source said.Abundant supply and weak demand have been depressing SBR prices in recent months.Non-oil grade 1502 SBR prices were assessed at $2,200-2,300/tonne (€1,672-1,748/tonne) CIF (cost, insurance and freight) China in the week ended 28 November, down by $200/tonne from 31 October levels, according to ICIS.Falling prices of feedstock butadiene (BD) have been aggravating the pressure on SBR values.BD prices shed about $250/tonne since 2 November to $1,450-1,490/tonne CFR (cost and freight) northeast (NE) Asia on 28 November, ICIS data showed.
Source ICIS News
Released on 06/12/12
Talison Lithium said on Thursday that it has agreed to a Canadian dollar (C$) 7.50/share takeover offer from China’s Chengdu Tianqi Industry.Talison is headquartered in Australia but its shares are listed on the Toronto Stock Exchange.Tianqi’s cash offer, valuing Talison's equity at about C$848m ($848m), was superior to the C$6.50/share takeover offer by US-based specialty chemicals firm Rockwood in August, Talison said."This price represents an attractive premium for security holders relative to the price under the Rockwood proposal and reflects positively on Talison’s position in the global lithium market," board chairman Peter Robinson said.However, under its agreement with Tianqi, Talisman is granting Rockwood five business days to match Tianqi’s offer.Rockwood media officials were not immediately available for comment. The company had said last month it would not raise its offer.Talison's shares were up 6.6% at C$7.32/share at 12:55 hours on the Toronto Stock Exchange.
Source ICIS News
Talison Lithium said on Thursday that it has agreed to a Canadian dollar (C$) 7.50/share takeover offer from China’s Chengdu Tianqi Industry.Talison is headquartered in Australia but its shares are listed on the Toronto Stock Exchange.Tianqi’s cash offer, valuing Talison's equity at about C$848m ($848m), was superior to the C$6.50/share takeover offer by US-based specialty chemicals firm Rockwood in August, Talison said."This price represents an attractive premium for security holders relative to the price under the Rockwood proposal and reflects positively on Talison’s position in the global lithium market," board chairman Peter Robinson said.However, under its agreement with Tianqi, Talisman is granting Rockwood five business days to match Tianqi’s offer.Rockwood media officials were not immediately available for comment. The company had said last month it would not raise its offer.Talison's shares were up 6.6% at C$7.32/share at 12:55 hours on the Toronto Stock Exchange.
Source ICIS News