Russian petrochemical companies Sibur International and TAIF Group have finalised a deal to merge and create the largest petrochemical company in the country and one of the biggest in the world.
Photo: Sibur
Photo: Sibur
"Under the agreement, TAIF shareholders will receive a 15% stake in the new combined company in exchange for 50% plus 1 share in JSC TAIF. To ensure faster integration and higher efficiency of the combined entity’s operations and investment program, the parties have agreed on an early exercise of an option for the remaining stake of TAIF’s shareholders," said a statement released by both companies.
Following the completion of all ongoing investment projects, the new combined company will be among the top five producers of polyolefin and rubber globally. The company’s investment program will yield further growth of chemical non-commodity exports and import substitution, and also unlock new ways of tackling sustainability and environmental challenges.
The deal brings together the two companies’ expertise in major investment projects and facilitates efficient distribution of feedstock, which will boost the Russian Republic of Tatarstan’s petrochemical cluster and pave the way for new partnerships.
JSC TAIF is the parent company of the largest private group in Russia. Its key business lines include oil refining and gas processing, chemicals and petrochemicals, energy, and investments. Its chemical and petrochemical product portfolio comprises 581 commodities, with around 40% of products exported.
In Russia, TAIF Group is one of the biggest plastics and rubber producers as well as being the world’s biggest isoprene rubber producer.
Dmitry Konov, Chairman of the Management Board at Sibur Holding, said: "This combination of industry leaders represents a significant step in the evolution of the Russian petrochemical sector. We are combining our competencies, energy and ambition to lay the groundwork for what is sure to become a global leader.”
Ruslan Shigabutdinov, General Director of JSC TAIF, added: "Today the TAIF Group is entering a new stage of its development. The combination of our petrochemical businesses with Sibur will enable the new company to assert its leadership in the global market and become a top-5 global petrochemical producer."
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