Sibur and TAIF to Merge Petchems Businesses
“This combination will make the new company’s petrochemical operations more competitive in the global market, improve its resilience to market fluctuations, and also unlock further growth potential of Russia’s petrochemical industry,” the companies said.
The combined company will also benefit from improved diversification of its resource base, optimized distribution and logistics, joint R&D development, and the sharing of operational best practices to maximize the efficiency of its assets.
Furthermore, Sibur and TAIF said the merger will facilitate more efficient distribution of feedstock to ensure full capacity utilization and further development of the petrochemical cluster in Tatarstan.
Albert Shigabutdinov, chairman of TAIF’s board of directors, added: "The deal will help TAIF Group to substantially accelerate the key projects in its 2030 Strategic Development Program that will see over RUB 1.5 trillion of investment over the next 10 years, improve productivity at our facilities, and expand our product mix.”
Under the terms of the transaction, existing TAIF shareholders will receive a 15% stake in Sibur in exchange for a controlling interest in TAIF’s group of petrochemical and energy companies. The remaining stake in TAIF can be subsequently purchased by the combined company.
Author: Ellaine Burridge, Freelance Journalist