PTT Chemical International paid the Germany-based company €104m for a 50 per cent stake in Cognis Oleochemicals, which sells natural-based products for use in personal care, home care and industrial applications.
Henceforth Cognis Oleochemicals will be held as a joint venture between PTT Chemical International and Sime Darby Plantation.
Cognis focuses on core business
The company achieved sales of €729m last year but Cognis decided to sell its stake in order to channel its energies on businesses that are driven by the wellness and sustainability trends.
"The sale of our stake in Cognis Oleochemicals reflects our strategy to consistently concentrate on the innovation-driven growth markets of wellness and sustainability," said Cognis CEO Antonio Trius.
Earlier in the month Cognis sold its Pulcra Chemicals subsidiary to Fashion Chemicals for €26.3m. The company said its decision to sell was again driven by its strategy of concentrating on the wellness and sustainability trends.
The latest transaction is expected to be completed by the end of September once closing conditions such as regulatory approvals are fulfilled. The joint venture will continue to operate as Cognis Oleochemicals until a new name is chosen.
Links between Cognis and PTT Chemical
The new holders of Cognis' 50 per cent stake have close ties with the specialty chemical firm having undertaken joint ventures together in the past.
This will prove useful to the company as it does not intend to sever all links with the business.
"By selling our stake to well known partners we ensure a stable supply of oleochemical base-stocks, as we are intending to continue sourcing products from the business under normal third party commercial terms," said Trius.