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China's state-owned company Sinochem International has partnered with Halcyon Agri to combine their natural rubber assets and together create a natural rubber supply chain manager.

To be combined under Halcyon Agri, the new business will register combined revenues of more than $2.3bn.

Following the completion of the deal, in the upstream segment, the merged entity will have 153,000ha of land in Africa and South East Asia, while in the midstream processing division, will have 35 processing facilities across Indonesia, Thailand, Malaysia, China and Africa, with a total annual processing capacity of around 1.5 million tonnes.

The merged entity will have a distribution network in major hubs across China, Asia, Europe and the US, as well as annual natural rubber and latex sales of over two million tonnes.

As per the terms of the deal, which is expected to end by the third quarter of this year, Sinochem International will acquire a 30.07% shareholding in Halcyon Agri for S$0.75 cents per share in cash and make a mandatory general offer (MGO) to all shareholders of Halcyon Agri at the same price.

Moreover, Halcyon Agri will buy Sinochem's natural rubber processing assets in China and Malaysia and trading businesses, for consideration of 280 million Halcyon Shares.

After closing the deal, Sinochem will be the majority shareholder of Halcyon Agri, which will become the holding company of the expanded group.

The deal is subject to certain conditions and approvals.

With customers from over 100 countries and regions across the globe, Sinochem International is currently involved in industrial investment, logistics, trading and distribution of natural rubber, fine chemicals, agrochemicals, chemical logistics, chemical distribution, and other sub-sectors.

Halcyon Agri, which currently owns 14 natural rubber processing facilities in Indonesia and Malaysia, produces sustainable technically specified rubber.

The company is engaged in the origination, production and distribution of natural rubber.

Last June it completed the acquisition of CentroTrade Rubber Group for €8.8m.

CentroTrade is involved in both dry natural rubber and latex products, and has offices in Singapore, Malaysia, Germany and the US, as well as logistics assets in seven cities across the globe.

chemicals-techonlngy.com