Japan“s Asahi Glass has signed a basic agreement with ICI in preparation for acquiring the UK chemical giant“s fluoropolymer business.
Under the arrangement, Asahi Glass will acquire three faciliti…
Japan“s Asahi Glass has signed a basic agreement with ICI in preparation for acquiring the UK chemical giant“s fluoropolymer business. Under the arrangement, Asahi Glass will acquire three facilities maintained by ICI in the UK and US for producing polytetrafluoroethylene (PTFE) and compounding fluoropolymers. While the output capacity has not been disclosed, ICI reportedly generated sales of some US$ 110 million from the three facilities in 1998. The acquisition will triple Asahi Glass“s share of the worldwide PTFE resin market to nearly 20%, second only to DuPont of the US. The deal follows an Asahi Glass move this January transforming its joint PTFE venture with ICI into a full Asahi Glass subsidiary. The transaction supports ICI“s desire to concentrate more on specialty chemicals while allowing Asahi Glass to expand its fluoropolymer business. ICI had been soliciting buyers since this March, and Asahi Glass was selected following bids from several companies. Asahi Glass, which will pay 15 billion yen (US$ 143 million) for the business, hopes to complete the acquisition within this year. In an attempt to take over ICI“s US and UK operations the company plans to establish Asahi Glass Fluoropolymers USA and Asahi Glass Fluoropolymers UK, respectively. After the transfer of ownership Asahi Glass will boost its share of the global PTFE market to 15-20% from just over 6% now. Worldwide demand for the resin exceeds 60,000 tonnes per year, with Japan accounting for 8,000 tonnes per year.