Ineos Group to sell fluorochemicals business to Mexichem Fluor S.A. de C.V., a subsidiary of Mexichem S.A. de C.V.
The agreement will bring together the world’s largest fluorspar supplier and hydrofluorocarbon producer with a leading worldwide fluorochemicals company.
“The agreement presents a unique opportunity to bring together the world’s largest supplier of fluorspar, with our own world leading fluorochemical production assets, customer base and research capabilities,” said David Price, CEO Ineos Fluor. Ineos Fluor is a major supplier of refrigerants used in mobile air conditioning systems.
Ineos Group has agreed terms for the sale of its fluorochemicals business to Mexichem, a leading Latin American producer of PVC pipes and resin, chloralkali, hydrofluoric acid and fluorspar.
The deal comprises the international business and assets related to Ineos’ fluorochemical operations located in North America, Europe, and Asia. It is expected that on completion of the transaction, the business will become an integrated, global producer of speciality fluorochemicals with worldwide presence and annual sales revenue of over US$500 million.
David Price, CEO Ineos Fluor warmly welcomed the news. “The agreement presents a unique opportunity to bring together the world’s largest supplier of fluorspar, with our own world leading fluorochemical production assets, customer base and research capabilities. The investment by Mexichem shows real commitment and confidence in the future of fluorochemicals, as a strategic business.”
Elaborating on the reasons behind the sale, Price adds: “Whilst performing well, the fluorochemicals business no longer fits within the INEOS Group portfolio as it focuses its attention on its large-scale petrochemicals businesses.”
Ineos Fluor is a world leading specialities business built on expertise and innovation in fluorine chemistry. The company supplies fluorine-based products, technology and services across a number of major industries from pharmaceuticals to automotive, refrigeration, and air-conditioning. The company employs around 350 people across sites in the Europe, North America and Asia.
Ricardo Gutiérrez Muñoz, CEO, Mexichem said, “This agreement is a major step forward in the development and growth of Mexichem. Acquiring Ineos’ Fluorochemicals business reflects our ongoing strategy to add value to our main raw materials through vertical integration in more added value products, expanding our product range and extending the global reach of our fluorine products business.”
He adds, “The strategic fit of this business within Mexichem presents a unique opportunity to enhance our business, our position in the fluorochemicals market and the service that we can offer our customers.”
The sale is expected to be completed at the end of March, subject to necessary regulatory filings and approvals, including bank consent and approvals under applicable antitrust laws and regulations.