The massive joint venture will have about $5 billion in annual sales and brings together all of the styrenics assets of both firms, minus their respective expanded polystyrene operations. Each of the suppliers will have a 50% stake in the venture once it is completed, with that expected following antitrust approval in 2011.
The new JV is to be called Styrolution, according to the Letter of Intent signed by the companies' leadership on Nov. 29. BASF had already announced plans to divest its styrenics operations by the end of this year and, from Jan.1, 2011 will form a new company, Styrolution, encompassing all of its styrenics activities. INEOS is in the process of acquiring the other 50% shareholding in its 50-50 styrenics joint venture, INEOS NOVA, from NOVA Chemicals. Upon completion of the proposed joint venture with BASF, INEOS will transfer these activities into the new Styrolution group....