Showa Denko K.K. (SDK; Tokyo, Japan; www.sdk.co.jp), JX Nippon Oil & Energy Corp. (JX), and LyondellBasell Group (LYB; Rotterdam, the Netherlands; www.lyondellbasell.com) have reached final agreement concerning the sale and purchase of LyondellBasell’s shares in SunAllomer Ltd. (SunAllomer), a joint venture (JV) company among the three parties for the development, production and sale of polypropylene (PP) and PP-based advanced materials.
Specifically, SDK Sunrise Investment (SSI), owned by SDK and JX, will purchase LYB’s 50% stake in SunAllomer effective August 31, 2016. After the acquisition, an absorption-type merger of SSI and SunAllomer will take place on November 1, 2016 with SunAllomer as the surviving company. The partnership between SunAllomer and LYB in various areas, including technology, marketing, and sales, will be maintained as at present.
For SDK and JX, the polypropylene business constitutes a key element in their olefin chains. Taking this opportunity of acquiring additional shares, the two companies will further strengthen cooperation with SunAllomer, thereby enhancing the competitive power of their polypropylene business.