KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) is buying the entire stake in Perstorp Holding AB, a sustainability-driven global specialty chemicals company, for RM10.5 billion.
PetChem signed a shares purchase agreement (SPA) with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm, on May 14.
The completion of the acquisition is subject to relevant regulatory and shareholders' approvals.
PetChem managing director and chief executive officer Mohd Yusri Mohamed Yusof said the acquisition marked the creation of a significant specialty chemicals portfolio, while enhancing the company's overall earnings.
Yusri said this followed the acquisition of BRB Group in 2019, a leading global independent producer and formulator of silicones, lube oil additives and chemicals, which launched PetChem into new areas aligned with its long-term growth ambitions.
"This landmark acquisition is a major milestone for PetChem in establishing a key platform to diversify into the specialty chemical industry.
"It will also help the company to capture new growth opportunities, while enabling us to future proof our business against market cyclicality and volatility," he said.
According to Yusri, Perstorp was an outstanding strategic fit for PetChem and enabled it to participate in attractive end-markets.
He said the acquisition would also provide PetChem with critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions.
"We find Perstorp attractive for their expansive range of products, established customer base as well as their market leadership in selected chemicals, which are complementary to PetChem.
"Perstorp will add up to 2.3 million tonnes per annum to PetChem's production capacity and contribute about 28 per cent incremental revenue to the company as well as supporting our medium-term goal of establishing 30 per cent revenue generated from non-traditional businesses by 2030," he said.
Meanwhile, Perstorp president and chief executive officer Jan Secher said the company saw a strong commonality in values and priorities for how to take its respective businesses forward with PetChem.
"By tapping into the Petronas strong global brand and PetChem's strength as a reputable industry and market leader in the Asia Pacific region, we are confident that Perstorp can continue to expand into its next phase of growth," said Secher.
Perstorp has an industry-leading sustainability strategy and is well-known for its pro-environment products and solutions, that are used by and required for the sustainable transformation of many industries and end products.
Through this strategy, Perstorp has developed a number of solutions such as the game-changing production of sustainable methanol from carbon dioxide, residue streams, biogas and green hydrogen at Stenungsund site to replace a large portion of its fossil-based methanol feedstock by 2026.