Petronas Enters Specialty Chemicals with BRB Buy
Marking its first foray into the specialty chemicals market, major Malaysian producer Petronas Chemicals Group (PCG) has completed its acquisition of Da Vinci Group, widely known as BRB. Da Vinci is now a wholly owned subsidiary of PCG. Financial terms of the deal were not disclosed.
A private company incorporated in the Netherlands, BRB’s operations include formulating and manufacturing silicones, lube oil additives and chemicals. The Ittervoort-based company has grown from its founding in 1981 as a one-man band to an international group with more than 240 employees and in excess of 11 locations in Europe and Asia. Investment company Bencis Capital Partners acquired a majority share in BRB in April 2016.
Commenting on the acquisition, PCG’s managing director and CEO Datuk Sazali Hamzah said: “I am pleased that we have completed the acquisition of Da Vinci. It provides a compelling entry point for PCG to grow into silicones business and enhance its competitive position in attractive end-markets such as personal care, construction, paints and coatings, electronics, automotive and healthcare, particularly in the Asia-Pacific region. Venturing into specialty chemicals beyond existing assets allows us to diversify our product portfolio and future-proof our business.”
The deal was first announced on May 16, 2019. At the time, PCG said it was part of its next chapter of growth, focusing on future strategic positioning and venturing into derivatives and specialty chemicals.
Part of the Petronas Group, PCG is a major producer of commodity chemicals such as olefins, polymers, fertilizers and basic chemicals among others, with a total combined capacity of 12.8 million t/y.
