USA: Business Deal CP Chem Bids 15 Billion Dollars to Acquire Nova Chemicals
If Chevron Phillips Chemical acquires Nova Chemicals, CP Chem will become the largest producer of ethylene in North America. The firm will also strengthen its position as the leading producer of polyethylene in the region.
USA – Reports have suggested that Chevron Phillips Chemical (CP Chem) has bid 15 billion dollars to acquire Canada based firm Nova Chemicals. If the acquisition is successful, the deal would enable CP Chem to strengthen its position as the leading producer of polyethylene states a report by IHS Markit. Other news reports also state that the deal will also lead to CP Chem becoming the largest producer of high-density polyethylene (HDPE) in North America, followed by Lyondell Basell.
In terms of ethylene capacity too, CP Chem’s capacity which currently stands at 5.3 million metric tonnes/year (MMt/y) can increase to 9.1 MMt/y if the deal goes through, thus, making the firm the largest producer of ethylene in North America.
With a capacity of 824,000 metric tonnes per year, CP Chem occupies the fourth spot for linear low-density polyethylene (LLDPE) in the North American region. If Nova is added to the Group, CP Chem would increase the figure to 2.3 MMt/y—also 22 % of the regional total. In this case, CP Chem would move up to the third spot with Exxon Mobil and Dow occupying the first and second position respectively.