(MENAFN- Muscat Daily) Oman Oil Co (OOC) has announced the acquisition Oxea, the world's largest supplier of oxo-based chemical products.
This investment will enable Oman Oil to become a vertically integrated global chemical leader. Oman Oil paid almost €1.8bn, a Bloomberg report, quoting people familiar with the matter, said.
The agreement was signed by H E Nasser al Jashmi, undersecretary of the Ministry of Oil & Gas and chairman of OOC, in the presence of Ronald Ayles, managing director and head of chemicals at Advent International, a leading global private equity firm, and Reinhard Gradl, chairman of the Oxea Group.
Upon receipt of antitrust approvals and satisfaction of other conditions, Advent International will sell its entire equity to OOC, a press release said. Oxea is ranked first in the world as a supplier of oxo chemicals to the merchant market and second as producer of oxo chemicals globally in products like aldehydes, esters and carboxylic acids. Oxea was built from two completely separate businesses, which Advent International had acquired in 2007.
Within less than seven years Advent created a market leader in the oxo segment by contributing comprehensive sector and market know-how. Today, Oxea has operations in the Americas, Europe and Asia and has the broadest portfolio producing more than 70 oxo chemicals for customers in a wide range of industries, such as pharmaceuticals, aromas and scents, paints and lacquers, adhesives, safety glass, lubricants, cosmetics and plastics, with sales of over 1.3mn tonnes.
This acquisition is expected to expand OOC's downstream portfolio by bringing world-class technology and know-how to Oman through existing assets and new investments.
''This landmark acquisition reaffirms Oman Oil Co's role in supporting the goals outlined in the sultanate's Vision 2020, which aims to diversify the economy by reducing dependence on oil, growing ‘in country value' and maximising the potential of Oman's geographic location to reach both established and emerging markets,'' said H E Jashmi.
''It is necessary to continue enriching the national economy through strategic ventures that have the right mix of technology and know-how. This is a monumental step for Oman Oil as we continue to expand our global footprint while positioning the Sultanate in the international arena.''
He added, ''Oman Oil's approach is to develop the downstream industry value chain by identifying new opportunities that address the business needs of globalisation. There is a unique opportunity to build an integrated chemical platform in Oman from our current investment base. We see our acquisition of Oxea as the corner stone for this platform by bringing its technology and expertise to Oman and connecting it to feedstock from our investments in Duqm's economic zone. This will also contribute to Oxea's expansion strategy, especially in the Asian growth markets.''
Mulham al Jarf, Deputy chief executive officer of Oman Oil Co, said, ''With its strong market position and unique expertise, Oxea will strengthen our position in the global chemical sector and contribute to Oman Oil Co's longterm downstream strategy.
This will provide adequate scope for growth in Duqm's economic zone as well as other planned projects in industrial areas in Oman.
"The jobs created in this relatively uncharted sector and especially from projects of this magnitude, will develop a platform for further human capital development and growth.''
Ronald Ayles said, ''Oxea is a highly resilient business with strong sales and earnings growth. We are convinced that the strengths and objectives of OOC and Oxea are highly complementary and that both sides will benefit from each other as they pursue their expansion strategy. We wish OOC and Oxea all the best on their joint path of
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