Mar 23 2007
NOVA Chemicals Corporation today announced it has signed a letter of intent with INEOS to expand the two companies' existing European joint venture to include North American assets. Under the terms of the proposed agreement, the newly expanded 50:50 joint venture will include NOVA Chemicals' STYRENIX unit and other styrenic polymer assets. The STYRENIX unit includes NOVA Chemicals' North American styrene and solid polystyrene assets, as well as the company's interest in the existing European joint venture with INEOS, called NOVA Innovene. INEOS will contribute its North American styrene and polystyrene assets, as well as its interest in the existing NOVA Innovene European joint venture.
The expanded joint venture will also include solid polystyrene-based NAS®, ZYLAR® and DYLARK® polymers from NOVA Chemicals and the AVANTRA® specialty products of INEOS.
"We are very pleased with this path and believe this larger, stronger JV will quickly build on the success of our recent work with INEOS in Europe. It provides a clear opportunity to significantly reduce costs and participate in industry consolidation," said Jeffrey M. Lipton, President and CEO of NOVA Chemicals. "We expect the expanded JV to add value for our shareholders and we will continue to look for further consolidation opportunities."
The transaction to form the expanded joint venture is expected to close in the third quarter of 2007, subject to approvals and completion of definitive agreements. The expanded venture is expected to have revenues of approximately U.S. $3.5 billion per year.