CALGARY, US: Nova Chemicals Corporation (Nova) has signed an interest purchase agreement with Williams Partners LP, to acquire Williams’ 88.46 percent ownership interest in the Geismar, Louisiana olefins plant. This includes approximately 525 acres of undeveloped land adjacent to the plant and Williams’ interest in the Ethylene Trading Hub in Mont Belvieu, Texas.
Under the agreement, Nova will pay $2.1 billion for the business. Upon closing, both companies will enter into a long-term arrangement for Williams to transport and supply ethane feedstock to support the plant.
The plant produces approximately 1.95 billion pounds of ethylene annually and is located in US Gulf Coast region, the largest refining and petrochemical production hub in North America. With riverfront access, the adjacent land represents a significant opportunity for future growth.
Nova will make offers of employment to all employees working at the Geismar plant, along with sales and marketing employees of the business from Williams’ Houston office.
The companies expect the transaction to close in summer 2017.
“This transaction provides us with the opportunity to acquire an operating facility with immediate, positive cash flow, and with access to new customers and the benefits of an experienced workforce. A key component of our growth strategy is to expand to US Gulf Coast and leverage next generation technology to better serve our customers in the Americas. The business allows us to diversify our geographic footprint benefiting from access to significant US shale gas reserves and well-established petrochemical and supply chain infrastructure,” said Todd Karran, president and CEO of Nova Chemicals.
HSBC Securities (USA) Inc acted as exclusive financial advisor to Nova. Orrick, Herrington & Sutcliffe LLP and Liskow & Lewis are acting as legal counsel.
© Worldofchemicals News
Read More: Nova to buy Williams Geismar olefins stake for $2.1 bn
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