Chevron Phillips Chemical, a nineteen-years-old JV between the Chevron Corp. and Phillips, headquartered in The Woodlands, Texas, had offered a bid of around $15 billion including debt to acquire Nova Chemical Corp., a Canadian plastic and chemical company headquartered in Calgary, people familiar with the talks had revealed on Thursday, the 20th of June 2019, in terms of anonymity.
In effect, the Chevron Phillips Chemicals, one of world’s leading petrochemical producer would gain access to Nova Chemical’s polystyrene and resins, which were being used in wide-ranging industrial purposes including major constructions alongside warehouse packaging.
None the less, the latest development of Nova Chemical’s sales came forth in the context of its Parent organization, Abu Dhabi’s state-controlled wealth fund, Mubadala Investment Co.’s exploration for a buyer of its Canadian plastic business since the beginning of the year, however, sources added that the talks had been in an early stage and there was no certainty that the Abu-Dhabi’s state-owned investment fund would accept a Chevron Phillips Chemical’s offer.
Adding further twist over the issue, one of the sources had also stated that the Mubadala Investment Co., the parent organization of Canadian plastic business, would decide to keep a stake on the Nova Chemicals. In fact, founded back in 1954, Nova Chemicals, the Canadian plastic maker with quarterly earnings of $271 million during Q1, 2019, had diversified its businesses beyond insulation and foam packaging to containers and beverage cups over the years.