PITTSBURGH, US: PPG Industries (PPG) said that it has acquired a 40 percent ownership interest in Taiwan Chlorine Industries Ltd (TCI) from China Petrochemical Development Corporation (CPDC).
TCI was established in 1986 as a joint venture between PPG and CPDC to produce chlorine-based products in Taiwan, at which time PPG owned 60 percent of the venture. In conjunction with the 2013 separation of its commodity chemicals business, PPG transferred its ownership interest in TCI to Axiall Corporation. Axiall was subsequently acquired by Westlake Chemical Corporation in 2016.
In connection with the sale of PPG’s original 60 percent ownership interest in TCI to Axiall, CPDC was granted an option to sell its 40 percent ownership interest in TCI to Axiall for $100 million following the three-year anniversary of PPG’s commodity chemical business separation. Axiall was concurrently granted the right to name PPG as its designee to purchase CPDC’s 40 percent ownership interest. In April 2016, CPDC elected to sell its 40 percent TCI ownership interest to Axiall, and in June, Axiall designated PPG to purchase this ownership interest.
PPG funded the acquisition, which represents a minority interest related to one of PPG’s legacy businesses, using cash on hand.
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