A consortium involving LG Chem and Honan Petrochemicals Corp have emerged as the most likely to acquire troubled Hyundai Petrochem who have been looking for a buyer since early last year.
The consortium was selected as the preferred bidder from 10 contenders based both locally and overseas. The main competition came from US-base Koch Industries.
The consortium are expected to lodge a final agreement some time next week. If accepted, they will become the largest ethylene producer in South Korea, leap frogging Yeocheon Naptha Cracking Centres, with a combined capacity of 2.5 million tonnes per year.
It is believed that the consortium is willing to bid $1.45 billion to acquire Hyundai Petrochem, after asking creditors to write off about 25% of their debt.
Ethylene is one of the basic building blocks of many chemicals and polymers.
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