Sterling Chemicals in a US$60 mln styrene supply agreement with Nova

21-Sep-07
Sterling Chemicals Inc. has joined with Nova Chemicals Inc. in a US$60 million styrene supply agreement. Under the terms of the deal, Calgary, Alberta-based chemical company Nova will have the exclusive right to the entire production capacity of Houston-based petrochemical company Sterling's Texas City styrene plant. The supply agreement will have an initial term extending until Dec. 31, 2017. Nova has agreed to pay Sterling a US$6 mln break-up fee, if the Federal Trade Commission does not approve the supply agreement.
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