Petronas Chemicals completes RM7.3b acquisition of Swedish Perstorp
The acquisition is expected to accelerate Petronas Chemicals’ portfolio diversification and focus on specialty chemicals. — Reuters image
Wednesday, October 12, 2022 15:11 MYTH
KUALA LUMPUR, Oct 12 — Petronas Chemicals Group Bhd (PCG) has completed its acquisition of Perstorp Holding AB (Perstorp), a leading sustainability-driven global specialty chemicals company based in Sweden for RM7.31 billion.
The acquisition is expected to accelerate its portfolio diversification and focus on specialty chemicals, the group said in a statement filed with Bursa Malaysia today.
PCG managing director and managing director Mohd Yusri Mohamed Yusof said the acquisition is part of the group’s exit strategy, creating a new platform for growth in the specialty chemicals industry.
“It also goes beyond the earning potential. Perstorp is a strategic fit with its similar values and talented employees who are experts in the industry,” he says.
In May, PCG signed a securities purchase agreement with Financière Forêt S.à.rl, a company under PAI Partners, a European private equity firm, to acquire the entire stake in Perstorp.
Mohd Yusri emphasized that the Group intends to continue to preserve and grow the value of Perstorp as the next few years will be a defining chapter for both companies, with plans to expand Perstorp’s global presence by strengthening its position in the Asia Pacific markets, including.
He noted that Perstorp has several projects underway for the near future, including the launch of Project Air, which aims to reduce carbon dioxide emissions through the production of sustainable methanol.
“Recently, the European Union (EU) Innovation Fund selected Project Air as one of 17 large-scale green technology projects,” he said, adding that the EU is investing over 1.8 billion euros in the environmental technology projects.
Mohd Yusri emphasized that Project Air is a game changer for the chemical industry, moving from fossil raw materials to recycled and bio-based raw materials.
“At full capacity, it will reduce global carbon dioxide (CO2) emissions by close to 500,000 tons per year from today’s levels, which is equivalent to one percent of today’s emissions in Sweden,” he said.
Mohd Yusri also added that Perstorp’s Finite Material Neutral initiative will act as a catalyst for PCG’s projects to achieve its ambition of net zero carbon emissions by 2050. — Bernama