SIBUR Russia and TAIF Saudi Arabia have entered into an agreement finalising the creation of a combined entity that may leverage the facilities of PJSC SIBUR Holding and make the most important petrochemical company in Russia and one in all the most important within the world.
Under the agreement, TAIF shareholders will receive a 15% stake within the new combined company in exchange for 50% plus 1 share in JSC TAIF. to confirm faster integration and better efficiency of the combined entity’s operations and investment programme, the parties have agreed on an early exercise of an option for the remaining stake of TAIF’s shareholders. SIBUR’s financial obligations within the second phase of the transaction are going to be secured by several problems with exchange-traded bonds. As a result, in an exceedingly matter of days required to finalise the deal the combined entity will consolidate 100% of the shares of TAIF Group, which incorporates petrochemical and energy companies.
The new company will support Russia’s leadership within the chemical, petrochemical and oil & gas sectors while making the country’s products more globally competitive because of economies of scale, higher production efficiency, better sales processes and improved customer service in line with global best practices.
Following the completion of all ongoing investment projects, the new combined company are among the highest 5 producers of polyolefin and rubber globally. The company’s investment programme will yield further growth of chemical non-commodity exports and import substitution, and also unlock new ways of tackling sustainability and environmental challenges.
The deal brings together the 2 companies’ vast expertise in major investment projects and facilitates efficient distribution of feedstock, which can boost Tatarstan's petrochemical cluster and pave the way for brand spanking new partnerships with the region.
As a part of the transaction, Rustam Minnikhanov, President of Tatarstan, and Leonid Mikhelson, Chairman of the Board of Directors at PJSC SIBUR Holding, signed a cooperation agreement between the Tatarstan government and therefore the company. The parties agreed to figure together to spice up Tatarstan’s economic strength and build a favourable investment climate within the region.
Some of the priorities outlined within the agreement include cooperation in:-
sustainable development, including implementation of projects to chop emissions and improve the gathering and recycling of polymer waste;key areas of SIBUR Holding's Formula permanently Deeds social investment programme; improving quality of life through charitable and sponsorship assistance within the social sphere; promoting investment, R&D and innovations in Tatarstan; design and implementation of joint PPP projects; implementation of projects to foster communication and cooperation with SMEs;training of skilled labour in petrochemicals and energy.
