Sibur and TAIF Finalize Petchems Merger
“This combination of industry leaders represents a significant step in the evolution of the Russian petrochemical sector,” said Dmitry Konov, chairman of Sibur’s management board. “We are combining our competencies, energy and ambition to lay the groundwork for what is sure to become a global leader.”
Under the terms of the deal, TAIF shareholders will receive a 15% stake in the new entity in exchange for 50% plus 1 share in TAIF’s group of petrochemical and energy companies. To speed up integration, the partners have also agreed to exercise early an option on the remaining TAIF stake.
Sibur said the new company will support Russia’s leadership in the chemical, petrochemical and oil & gas sectors while making the country’s products more globally competitive thanks to economies of scale, higher production efficiency, better sales processes and improved customer service in line with global best practices.
As part of the transaction, Leonid Mikhelson, chairman of Sibur’s board of directors, has signed a cooperation agreement with the Tatarstan government under which the parties have agreed to work together to boost Tatarstan’s economic strength and create a favorable investment climate.
Some of the priorities outlined in the agreement include implementing projects to cut emissions and improve the collection and recycling of plastic waste; promoting investment, R&D and innovation; designing and executing joint public private partnership projects; and training skilled labor in petrochemicals and energy.
Author: Elaine Burridge, Freelance Journalist