Cognis sells its stake in Cognis Oleochemicals to PTT Chemical
Cognis announced the sale of its 50-percent stake in the Cognis Oleochemicals joint venture to PTT Chemical International Private Ltd., a Singapore based wholly owned subsidiary of PTT Chemical Public Company Limited. The sale is in line with Cognis' strategy of focusing on its core businesses driven by the wellness and sustainability trends. Agreements respecting the transfer of the business and related transactions were signed today in Kuala Lumpur effective June 30, 2008. The final transaction is subject to usual closing conditions including regulatory approvals and is expected to be completed by the end of September 2008.
Cognis has sold its 50 percent stake in the joint venture company to PTT Chemical International for about 104 million euros in cash, representing an enterprise value of 285 million euros for the whole joint venture company.
Cognis already has established a successful relationship with PTT Chemical: In 2005 they founded Thai Ethoxylate Ltd., a 50:50 joint venture and Thailand's first producer of fatty alcohol ethoxylate. 2006 saw the founding of Thai Fatty Alcohols Company Ltd., a 50:50 joint venture between Cognis and PTT Chemical's subsidiary Thai Oleochemicals for the production and marketing of fatty alcohols.
Cognis Oleochemicals is a major producer of natural-based oleochemical products and until now was a 50:50 joint venture between Sime Darby Plantation Sdn Bhd. and Cognis. It operates production sites in Europe, North America, and Asia and achieved sales of 729 million euros, including 130 million euros deliveries to Cognis in 2007. Cognis and Sime Darby have been collaborating on the production, marketing and distribution of fatty acids, glycerin and associated products for almost 30 years. In 2006, both companies expanded the scope of their existing joint venture by transferring Cognis' global oleochemicals and plastics technology businesses into an operating company.
Cognis Oleochemicals will continue to operate under the Cognis Oleochemicals name for an interim period until a new name is established.
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