Yantai, Shandong – Wanhua Chemical plans to fully acquire its controlling shareholder Wanhua Chemical Industry (WCI).
CNY 52bn ($8.2bn) is the expected price of the deal.
The payment will be made in full by private placement, said Wanhua Chemical’s statement in May. Yantai State-owned Assets Supervision and Administration Commission will remain as the ultimate controlling shareholder.
WCI’s assets include Hungary’s BorsodChem with 300kT/year MDI capacity. Upon completion of the deal, Wanhua Chemical will have 2.1mT/year total MDI capacity. It claimed this will make it the world's largest MDI producer.
The deal also solves the problem of horizontal competition with BorsodChem, the statement added. BorsodChem, is the world’s eighth largest MDI producer, Wanhua said. It added that the business made nearly EUR 200m net profit in 2017.
WCI was set up in January 2018 to take over the polyurethane related holdings of Wanhua Industrial. That company was the former controlling shareholder of Wanhua Chemical with nearly 48% ownership. WCI has a net asset book value of CNY 2.1bn, said the statement.
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