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European Commission approves SIBUR’s acquisition of TAIF

CIS PETROCHEMICALS

European Commission approves SIBUR’s acquisition of TAIF

The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control of TAIF by SIBUR Holding – Interfax

The EC announced that the deal The transaction gives rise to horizontal overlaps and vertical relationships between the companies' activities related to the production of butyl rubber and isobutylene.

It was noted that since SIBUR's share in the isobutylene market is very small, the regulator decided that the deal would not raise any competition concerns. In addition, several strong global butyl rubber producers remain on the market.

Earlier, SIBUR planned to buy 50% plus one share of TAIF and received an option to buy the remaining stake in 2024-2030. However, it was recently decided to accelerate the complete purchase of TAIF.

The controlling stake will be redeemed for 15% of SIBUR's shares, and the rest will be paid for with bonds of the merged company. The controlling stake in TAIF is estimated at $ 4 billion, the rest at $ 3 billion. The value of the merged company was estimated at $ 26.8 billion.

TAIF owns controlling stakes in Nizhnekamskneftekhim and Kazanorgsintez, as well as TGK-16. By the end of 2020, the share of TAIF Group in the total volume of production in Russia amounted to 64% for rubbers, and 28% for plastics. TAIF Group is the only Russian producer of polycarbonates, sevilen and a number of other popular types of polymer products.

The new company is expected to become one of the top 5 global leaders in the production of polyolefins and rubbers with a productive capacity amounting to 8 million tons of polyolefins and 1.2 million tons of rubbers.

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