London – German speciality chemicals company Lanxess is expecting to complete the approvals process for its 50:50 JV with Saudi Aramco in the first half of 2016, as scheduled.
Lanxess says rubber JV approvals on track
Speaking to ERJ, a Lanxess spokesman confirmed that the Indian fair trade authority CCI approved the deal just before the end of the year 2015.
In a tweet on 29 Dec, the Competition Commission of India (CCI) said it had considered "certain upstream and downstream products of the worldwide synthetic rubbers sector" as the relevant market for the deal.
"However, in the absence of any competition concerns, the relevant product and geographic markets be left open," the regulator said.
“Regulatory authorities in a number of countries will need to approve the deal, not only the Indian Competition Commission,” noted the Lanxess spokesman.
Most jurisdictions, he said, have already done so, but not all yet.
“We are pleased to confirm the process is progressing well and we expect completion of the approval process during the first half of 2016,” he said.
Regarding the name of the JV, he said, the process of name finding is currently running, but no final decision has been taken so far.
The joint venture will be headquartered in the Netherlands, but according to the source no no decision on the final location has been taken.
Lanxess and Saudi Aramco subsidiary, Aramco Overseas Co., announced their agreement to establish a joint venture for synthetic rubber on 22 Sept.
The total joint venture is valued at €2.75 billion.
Lanxess will contribute its synthetic rubber business to the JV, which comprises its Tire & Specialty Rubbers (TSR) and the High Performance Elastomers (HPE) business units. Together the businesses will have 20 production facilities in nine countries and some 3,700 employees and additional support staff.
Saudi Aramco will provide the joint venture with “competitive and reliable access to strategic raw materials over the medium term,” added the Lanxess statement.
The JV will be managed by a holding company headquartered in The Netherlands. The CEO will be appointed by Lanxess and the CFO will be appointed by Aramco Overseas Co.
Each company will have equal representation on the JV’s board of directors. Lanxess will consolidate the JV’s financials.