Arkema selling functional polyolefins business to SK.

Petrotahlil :French chemicals supplier Arkema SA is divesting its functional polyolefins business to SK Global Chemical, a major chemicals player in South Korea and a subsidiary of SK Corp.

Valued at €335m, the transaction is part of Arkema’s strategy to focus on “speciality” chemicals and advanced materials.

Part of Arkema’s PMMA business unit, the segment has annual sales of approximately €250m and employs 100 people in France.

Comprising ethylene copolymers and terpolymers for the food packaging, cable, electronics and coatings markets, the unit owns brands such as Evatane, Lotryl, Lotader and Orevac.

A subsidiary of South-Korean group SK, SK Global Chemical reported sales of $11.9bn in 2018, and operates around 10 production sites around the world.

The Arkema unit, said the French company, offers “a highly complementary fit” with SK Global Chemical’s existing portfolio of activities, enabling the South Korean company to consolidate its position in the packaging market and enter new industrial markets such as cable manufacturing.

With the acquisition, SK Global Chemical will create a French subsidiary, according to Arkema.

The proposed deal is subject to an information and consultation process involving Arkema’s employee representative bodies and to the approval of the relevant antitrust authorities. The transaction is expected to be finalised in second quarter 2020.

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