DU PONT / ICI
Acquisition of several ICI businesses / Move into PET bottle resin / Expands TiO2 business
The announcement that Du Pont de Nemours and Co (HQ: PO Box 80010 Wilmington, DE 19880-0010 / USA) is to acquire most of the industrial chemicals operations of ICI PLC (HQ: 9 Millbank, GB-London SW1P 3JF) marks another step in ICI's withdrawal from bulk commodity chemicals production. The deal, which is expected to raise up to GBP 1.8bn (USD 3bn), will include ICI's PET resin and intermediates and polyester film business worldwide and the non-North American assets of the titanium dioxide producer Tioxide.
The sale follows ICI's recent acquisition of the speciality chemicals business of Unilever, which was part of its strategy to shift its business into higher margin consumer chemicals and away from industrial products.Proceeds from the sale will help to reduce the debt taken on to fund the Unilever acquisition.
For DuPont, already the world's largest chemical company, the deal will enhance its position as world leader in TiO2 pigments and polyester films and move it into the PET bottle resin market. In TiO2, it will acquire a manufacturing presence in Europe, which will include plants in France, Italy, Spain and the UK, as well as manufacturing capabilities in Malaysia and South Africa. The purchase price is expected to be GBP 445m (USD 750m). ICI is looking at options for the disposal of the North American part of the business. DuPont is estimated to have a global market share of about 25% compared with ICI's 14%.
The ICI polyester business will give DuPont additional terephthalic acid intermediate technology to make it one of the leading and most competitive polyester producers in the world. The company will pay GBP 950m (USD 1.6bn) for the manufacturing facilities in the UK and USA and ICI's 70% shareholding in a PTA joint venture in Taiwan. In addition ICI Pakistan intends to establish a new 50/50 joint venture with DuPont to develop the PTA business in Pakistan. Worldwide, polyester is a USD 30m business that is growing at about 7% a year.
The "Melinex" polyester film operation is expected to raise GBP 385m (USD 650m). This business includes film operations in the USA, UK, Netherlands and Japan. Altogether the businesses to be sold to DuPont contributed aggregate sales of GBP 1,453m in 1996 and a trading profit of GBP 17m. See also "Polyester Polymers".
The sale follows ICI's recent acquisition of the speciality chemicals business of Unilever, which was part of its strategy to shift its business into higher margin consumer chemicals and away from industrial products.Proceeds from the sale will help to reduce the debt taken on to fund the Unilever acquisition.
For DuPont, already the world's largest chemical company, the deal will enhance its position as world leader in TiO2 pigments and polyester films and move it into the PET bottle resin market. In TiO2, it will acquire a manufacturing presence in Europe, which will include plants in France, Italy, Spain and the UK, as well as manufacturing capabilities in Malaysia and South Africa. The purchase price is expected to be GBP 445m (USD 750m). ICI is looking at options for the disposal of the North American part of the business. DuPont is estimated to have a global market share of about 25% compared with ICI's 14%.
The ICI polyester business will give DuPont additional terephthalic acid intermediate technology to make it one of the leading and most competitive polyester producers in the world. The company will pay GBP 950m (USD 1.6bn) for the manufacturing facilities in the UK and USA and ICI's 70% shareholding in a PTA joint venture in Taiwan. In addition ICI Pakistan intends to establish a new 50/50 joint venture with DuPont to develop the PTA business in Pakistan. Worldwide, polyester is a USD 30m business that is growing at about 7% a year.
The "Melinex" polyester film operation is expected to raise GBP 385m (USD 650m). This business includes film operations in the USA, UK, Netherlands and Japan. Altogether the businesses to be sold to DuPont contributed aggregate sales of GBP 1,453m in 1996 and a trading profit of GBP 17m. See also "Polyester Polymers".
31.07.1997 Plasteurope.com [19229]
Published on 31.07.1997