Huntsman Takes Control of German Maleic JV
Huntsman is buying out partner Sasol in their German maleic anhydride (MA) 50:50 joint venture for $92.5 million.
The transaction, which is set to close in the fourth quarter of 2019 subject to regulatory approvals and customary conditions, will give the US chemical company full ownership of the 105,000 t/y MA plant in Moers, Germany.
Huntsman said it will make the payment to Sasol from available funds, adjusting the transaction price for debt and other agreed terms.
"Acquiring the remaining interest in our maleic German joint venture from Sasol will provide us with the flexibility to fully integrate our European business into our worldwide footprint, thereby better servicing our global customer base in key markets such as construction and coatings," said Peter Huntsman, CEO of the Texas-based group. "This fits well into our core strategy to expand our portfolio of businesses with higher, more stable margins and strong free cash flow."
The jv was originally formed in 1996 between Condea Chemie and Huntsman. Sasol subsequently bought Condea from Germany’s RWE DEA in March 2001 for €1.3 billion.
Maleic anhydride is the key base material in unsaturated polyester resins, used in construction, automotive and marine products. It is also used in formulations for lube oil additives, food additives, paper chemicals, epoxies, among various other applications.
