Russian Petrochemical Merger Will Create Global Polyolefins Powerhouse
September 27, 2021
Petrochemicals producers Sibur and Taif have finalized an agreement to create the largest petrochemical company in Russia, and one of the largest Polyolefin companies in the world.
Under the agreement, first announced in April, Taif shareholders will receive a 15% stake in the new combined company in exchange for 50% plus 1 share in JSC Taif. The parties also agreed to exercise an early option on the remaining stake of Taif's shareholders, to help move the merger along. The combined entity will consolidate 100% of the shares of Taif Group in a matter of days.
Sibur added that the newly created company will support Russia's leadership in the chemical, petrochemical and oil & gas sectors while making the country's products more globally competitive thanks to economies of scale, higher production efficiency, better sales processes, and improved customer service in line with global best practices.
The deal is also expected to boost Tatarstan's petrochemical cluster and pave the way for new partnerships with the region. Tatarstan and PJSC Sibur have already signed a cooperation agreement to work together to boost Tatarstan's economic strength and create a favorable investment climate in the region.
Following the completion of all ongoing investment projects, the combined company is expected to be amount the top five Polyolefin and rubber producers globally. Sibur has said the joint entity is expected to produce 8.1 million tonnes/yr of Polyolefins when including its upcoming capacities and projects.
By Brian Balboa for The Plastics Exchange.
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