Jindal Poly Films surges on ExxonMobil biz acquisition

The company acquired global BOPP business of ExxonMobil Chemical for $235 million (approx. Rs 1,265 crore).

Jindal Poly Films surged 10 per cent to Rs 169 on BSE on Monday, after the commodity chemicals company announced the acquisition of the global biaxially-oriented polypropylene (BOPP) business of ExxonMobil Chemical for $235 million (about Rs 1,265 crore).

“ExxonMobil is the world’s largest company, in terms of revenues, and is involved in oil & gas and chemicals businesses. The transaction is expected to be closed by July,” Jindal Poly Films said in a press release.

The acquisition would result in Jindal Poly Films becoming one of the leading global manufacturers of flexible packaging films, with a combined BOPP film capacity of about 445,000 tonnes a year.

The deal involves the acquisition of five BOPP production units — two in the US (Georgia and Oklahoma) and one each in Belgium, the Netherlands and Italy. It also includes a technology centre and a sales office in New York, along with an office in Luxembourg.

On Monday, the company stock opened at Rs 155 and touched a high of Rs 171 on the National Stock Exchange.