Showa Denko KK (SDK) and JX Nippon Oil & Energy Corporation (JX) will acquire LyondellBasell’s stake in their joint venture SunAllomer Ltd, which manufactures polypropylene (PP) and PP-based advanced materials. “SDK Sunrise Investment (SSI), owned by Showa Denko and JX, will purchase LyondellBasell’s 50 percent stake in SunAllomer effective August 31, 2016,” said SDK in a press statement.
After the acquisition, an absorption-type merger of SSI and SunAllomer will take place on November 1, 2016 with SunAllomer as the surviving company. The partnership between SunAllomer and LyondellBasell in various areas, including technology, marketing, and sales, will be maintained as at present.
For SDK and JX, the polypropylene business constitutes a key element in their olefin chains. “Taking this opportunity of acquiring additional shares, the two companies will further strengthen cooperation with SunAllomer, thereby enhancing the competitive power of their polypropylene business,” the company added.
The Tokyo-headquartered SunAllomer Ltd has production capacity of 408 kilo tonne per annum.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%