MOSCOW (MRC) -- Mexichem, Mexican PVC and specialty chemicals maker, has announced that it has received clearance from all antitrust authorities with respect to its acquisition of Vestolit GmbH, reported Heraldonline.
Mexichem expects to close the transaction on December 1, 2014.
Based in Marl, Germany, Vestolit is Europe’s only manufacturer of High Impact Suspension PVC (HIS-PVC) for weather-resistant windows and is Europe’s second-largest producer of paste PVC for floors and wallpapers. Vestolit also produces alkyl-chlorides, a value-added intermediary used for a variety of chemical and industrial applications and is vertically integrated in a single site from Salt through Specialty PVC. Total installed PVC capacity is 415,000 tons per year.
Mexichem views this transaction is an opportunity to expand its European footprint, enter a new market segment and acquire new technology and best practices. The Company will consolidate VESTOLIT under its Chlorine-Vinyl chain for accounting purposes once the transaction is closed. Vestolit will continue to operate under its current management and with its existing portfolio of branded products.
As MRC wrote before, in arly August 2014, Mexican PVC and specialty chemicals maker Mexichem agreed to buy German PVC paste producer Vestolit from investment company Strategic Value Partners LLC (SVP Global) for 219 million euros (USD293 million).
Mexichem, of Tlalnepantla, an industrial municipality close to Mexico City, is Latin America’s largest manufacturer of PVC pipe, vinyl resins and compounds. Neither it nor SVP mentioned when they expected the deal to be completed.
New York investment banking firm Jefferies LLC advised SVP. JP Morgan Chase & Co was Mexichem’s adviser.
MRC