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INEOS Group to Evaluate Options to Divest its Ineos Silicas Subsidiary

Published on 2005-06-17. Author : SpecialChem

INEOS Group has confirmed, following a number of approaches by interested third parties, that it has decided to evaluate options to divest its INEOS Silicas subsidiary.

The investment bank Morgan Stanley has been appointed to oversee the evaluation process, which is expected to take 4-5 months.

"INEOS Silicas is a high quality business with an excellent product portfolio and some of the best product and process innovation around" said INEOS Capital director Andy Currie. "INEOS acquired the business from ICI in 2001 and it has seen continued growth and investment under INEOS ownership. It was never our intention to sell. However, Silicas is the only speciality inorganic chemical business in the INEOS portfolio and does not have any significant overlap with the rest of the group. We believe that the business would be better positioned under new ownership, where it can harness synergies and achieve greater critical mass".

INEOS' intention is to focus on its organic chemicals, polymers and chlor-alkali activities. Only recently, INEOS announced the acquisition of a polystyrene business in the US, from BASF.

Morgan Stanley & Co. Limited is acting for INEOS Group and no-one else in connection with the potential transaction and will not be responsible to anyone other than INEOS Group for providing the protections afforded to clients of Morgan Stanley & Co. Limited nor for providing advice in connection with such transaction.

INEOS is a rapidly growing global manufacturer of organic chemicals, polymers and chlor-alkali products. It comprises seven businesses each with a major chemical company heritage, and its production network includes 43 manufacturing facilities in 14 countries throughout the world. In 2004, INEOS had approximately 7000 employees and sales of more than $7 billion.

INEOS Silicas is a leading manufacturer of silicates, zeolites and silicas related products. The business, formerly known as Crosfield, has manufacturing sites in the UK (Warrington), Netherlands (Eijsden), USA (Joliet), Brazil (Jacana and Rio Claro), South Africa (Durban and Johannesburg) and Indonesia (Pasuruan). There is also an Asian Pacific regional sales organisation based in Singapore and Shanghai.

Source: INEOS

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