Chevron Phillips Chemical Company has offered to acquire Canadian Nova Chemicals Corp for over US$15 billion including debt, as per sources. Chevron Phillips Chemical- a joint venture between Chevron Corp and Phillips 66, is one of the world’s top petrochemical producers, Nova Chemicals is a major producer of expandable polystyrene and resins. While CPCC is the first bidder, more could emerge. Abu Dhabi’s sovereign wealth fund Mubadala Investment Co, the owner of Nova Chemicals, has been exploring a sale since the start of the year.
Abu Dhabi acquired Nova Chemicals for US$500 mln in 2009 using stated-owned International Petroleum Investment Co (IPIC). Since then, the company’s business has grown rapidly, taking advantage of the shale-driven natural resources boom in North America. Two years ago, Abu Dhabi merged IPIC with Mubadala, which manages over US$225 billion in assets. Nova Chemicals, Mubadala, Chevron and Phillips 66 have not commented.