Petronas acquires Optimal Group for $660 million
01 Aug 2009
Malaysian oil and gas major Petroliam Nasional Berhad (Petronas) has reached an agreement with Dow Chemical Company's (Dow) Union Carbide Corporation to acquire its entire stake in the Optimal Group of Companies (Optimal) for $660 million.
Petronas and Dow have agreed to enter into a commercial supply agreement to continue serving the current Optimal customers. Dow will market Optimal's products to Dow's existing customer base in the Asia-Pacific region.
Optimal Group comprises three joint ventures involving Petronas and Union Carbide: Optimal Olefins, Optimal Glycols and Optimal Chemicals. Union Carbide holds 23.75-per cent stake in Optimal Olefins and 50 per cent each in the other two companies.
Dow chairman and CEO, Andrew Liveris said: ''With this transaction, we hand over the management of these businesses to Petronas, while at the same time remaining committed to our customers in the region.''
The transaction, subject to customary and regulatory approvals, is expected to be closed by the end of September 2009.
Petronas president and CEO, Mohammed Hassan Marican said that the purchase of Dow's equity in Optimal would enable Petronas to strengthen its presence in the companies and reinforce growth of the Malaysian petrochemical industry. He expected that the relationship would continue, with Dow now becoming one of the largest customers of Optimal.
Petronas said it would fund the acquisition through internally generated funds.
The change in ownership is not expected to have any immediate effect on employment in the region.