Nova Chemicals bought out by Saudi petrochemical company

By Simon Pitman

- Last updated on GMT

Related tags: Petroleum

Global packaging and chemicals player Nova Chemicals has been acquired by Saudi Arabian firm International Petroleum Investment Company.

Nova Chemicals says that following the acquisition it will continue to operate the business from its Alberta, Canada hub, from where it supplies international markets.

Nova has been acquired through a plan of arrangement, for which only certain details of the transaction were revealed.

The deal will see the two businesses combine resources after IPIC acquires all of Nova’s issued and outstanding common shares at $6 per share.

Nova goes back to being private

This means that the company will soon be delisted from the Toronto and New York stock exchanges as the transaction will mean the company will go private.

Nova CEO and president Chris Pappas said that the deal represented ‘future opportunities’ for the business and would lead to the company growing further in international markets.

“Our team is focused on leveraging renewed financial strength to take our industry-leading technology from our operating base in Canada to the world,”​ said Pappas.

Consumer goods packaging

The company mainly supplies packaging for a range of consumers goods, including the cosmetics industry, as well as supplying a range of chemicals that are used to manufacture packaging materials.

Its area of specialization is polyethylene and styrenic polymers, as well as ethylene and a range of energy co-products.

“Nova Chemicals will complement IPIC’s existing petrochemical portfolio by providing access to North American markets and distribution channels, world-class technology, and a wider range of products,”​ said IPIC managing director Khadem Al Qubaisi.

Related topics: Business & Financial

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