Chemical companies "cut meat and sell themselves"! The price is as high as more than 70 billion!

Global Coatings News: Recently, Swiss specialty chemicals company Clariant said it has reached a final agreement to divest its quaternary ammonium business to Singapore-based Global Amines, a transaction value of US$113 million (about 779 million yuan), which is expected to be completed

On July 31, BP (BP) sold all 16.
67% of the exploitation interest in four fields in Australia's north-western North Carnavan Basin to Singapore's Jade Stone Oil & Gas Company, namely Cossack, Wanaea
, Lambert and Hermes.

On July 28, Evonik sold all of its betaine business in Hopewell, Virginia, USA, to specialty chemicals company Kensing LLC, including employees and part of the site
.

On July 26, Ye's Chemical Group Limited announced that it has signed a contract with PAG Investment Group (PAG) to sell a 51% actual interest in its solvent business subsidiary, Qianxin Chemical Group Co.
, Ltd.
, to PAMO
.

On July 21, Polimeros Especiales, Mexico's leading producer of emulsion resins, sold to Arkema
.
The acquisition is subject to approval by antitrust authorities and is expected to be completed
in the third quarter of 2022.

On July 6, Lankwitzer Lackfabrik GmbH of Germany sold its wheel liquid coatings business to AkzoNolebel, which is expected to be completed
by the end of 2022.

On July 1, International Flavors & Fragrances (IFF) sold its Microbial Control business unit to LANXESS for a transaction of approximately US$1.
3 billion
.

On July 1, Guangdong Tongde New Materials Co.
, Ltd.
sold DIC (China) Co.
, Ltd.
, a wholly-owned subsidiary of DIC Co.
, Ltd.

On June 30, German century-old paint brand Gross & Perthun GmbH.
was sold to Sherwin-Williams Williams (Sherwin-Williams AG
).

On June 30, ExxonMobil's Canadian subsidiaries, Imperial Oil and ExxonMobil Canada, entered into an agreement with Whitecap Resources Inc.
to sell XTO Energy Canada, a Canadian company that the two subsidiaries jointly own, for a total cash consideration of $1.
47 billion
.

On June 29, Longbai Group announced that it would transfer its 77.
50% equity interest in Jiaozuo Baili United Pigment Co.
, Ltd.
(corresponding to a capital contribution of 62 million yuan) to Zhejiang Huayuan Pigment Co.
, Ltd.
for a transfer price of 155 million yuan
.

On June 9, Gross & Perthun, a company that supplies coatings for the heavy equipment and transportation industries, was sold to Sherwin-Williams Broadway
.

On June 8, SKC decided to split the thin-film business and signed a stock sale contract
with Hahn & Company, Korea's largest investment-specific private equity fund operating company.
The transaction was for SKC's thin film business unit, film processing subsidiary SKC hi-tech & marketing, and plants in the U.
S.
and China, with contracts worth KRW 1.
6 trillion (about 8.
1 billion yuan).

On June 1, Kansai Paints sold its African paints and coatings business to AkzoNobel, which includes two subsidiaries of Kansai Paints: Kansai Plascon Africa Ltd.
and Kansai Plascon East Africa (Pty) Ltd.
, which operate in 12 countries and territories
in Southern and Eastern Africa.

On June 1, DuPont spun off the bio-based product-related business and technology officially completed the delivery and will be sold to Huafon Group for acquisition, mainly including its two production bases
in the United States.

On June 1, DP JUB delniška družba pooblaščenkadd, which manufactures and sells coatings in Central and Eastern Europe, transferred its shares to Dulux Group, Australia, a consolidated subsidiary of Nippon Paints Holdings, for a transaction of EUR 199.
7 million
.

On May 31, DSM announced that it had reached an agreement to sell its engineering materials business to Agro Capital and LANXESS
at an enterprise value of EUR 3.
85 billion.
According to a press release issued by LANXESS, A-Hong Capital will pay DSM approximately EUR 3.
7 billion (approximately RMB 25.
4 billion) to merge the business with LANXESS' Performance Materials business into a joint venture
.

On May 20, ExxonMobil signed an agreement to sell North Texas' natural gas assets to producer BKV for $750 million as part of the company's divestiture of
non-core assets.

On May 18, specialty silane producer Shandong Sike New Materials Co.
, Ltd.
sold a 60% stake to WACKER for about 120 million euros (about 844 million yuan
).

On April 29, Broad Hongyu (Tangshan) Waterproof Material Co.
, Ltd.
sold 63.
28% of its equity to Beixin Waterproof, a wholly-owned subsidiary of Beijian New Material, for a transaction price of 527.
8484 million yuan
.

On April 22, Colombian coatings company Grupo Orbis Group sold its Pintuco Paints and Coatings business, Andercol and Poliquim (resins, dispersions, adhesives and specialty chemicals), Mundial (distribution services for paints and related products) and Centro de Servicios Mundial (shared service center) to AkzoNobel
.

On April 20, DSM announced that it will sell its protective materials business to Avient for a value of 1.
44 billion euros, and the transaction is expected to close
in the second half of this year.
The proposed deal includes all of DSM's protective materials business, the most important of which is Dyneema, an ultra-high molecular weight polyethylene and "the strongest in the world" man-made fibers
.

On April 2, Eastman announced that it and its subsidiaries have completed the previously announced sale
of its adhesive resin business to Synthemart.
The transaction includes hydrocarbon resins (including Eastman Impera tire resins), pure monomer resins, polyolefin polymers, rosin resins and dispersions, as well as oleochemical and fatty acid-based resins
.
The total transaction price is US$1 billion in cash (approximately RMB6.
9 billion
).

On April 1, Sika sold its European industrial coatings business to Sherwin-Williams Williams (Sherwin-Williams AG
).

On March 29, Serbia's second largest civil explosives company, EKSPLOZIVI RUDEXD.
O.
O.
sold a 60% stake in Jiangnan Chemical for 3.
6 million euros (about 25.
31 million yuan
).

On March 10, chemical giant Bayer announced that it had agreed to sell its pest control business to private equity firm Cinven
for US$2.
6 billion.

On February 28, Ashland sold its high-performance adhesives business to Arkema
.

On February 27, British energy giant BP (BP) announced that it would sell its 19.
75% stake in Rosneft, with a direct loss of $25 billion
.

On Feb.
18, DuPont sold most of its transportation and materials business to Celanese
for $11 billion.

On February 10, Khimji Paints LLC, an Oman group company, sold its coatings division to Haihong Elderly
.

On February 9, AquaSurTech, a company focused on coatings for the vinyl/PVC building products industry, was sold to Sherwin-Williams Technologies
.

On February 7, Arsonsisi, an industrial coatings company in Milan, Italy, sold its powder coatings business to PPG, a transaction expected to close
in the first quarter of 2022.

On January 21, CromologyHolding SASS, Europe's fourth-largest manufacturer of architectural coatings, sold DuluxGroup, a consolidated subsidiary of Nippon, for a transaction of 1.
152 billion euros (about 8.
3 billion yuan).

On January 18, JSR Corporation sold the remaining 30% of its stake in Covestro to Covestro in its joint venture, Japan Fine Coatings Co.
, Ltd
.
, for a transaction price of approximately EUR 4 to EUR 6 million.

On January 11, Italian adhesive and polymer manufacturer SAPICI S.
p.
A and its holding company FINAPE S.
r.
l sold a 100% stake in Sun Chemical Group S.
p.
A
, a wholly owned subsidiary of DIC Group.

According to incomplete statistics, more than 30 chemical companies have embarked on the road of "selling factories" since the beginning of the year, including DuPont, Kansai Paint, Sika, DSM, Eastman, Huntsman, ExxonMobil and other overseas giants, including Longbai Group, Ye's Chemical, Guangdong Tongde New Materials and other domestic leaders, the highest price of more than 70 billion yuan, the entire industry involved in the flow of funds of more than 190 billion yuan, in all walks of life capital chain is tight at the moment can be described as very amazing
.

Although it seems to have some meaning of "cutting meat to save life", when the chemical industry chain is caught in the "Waterloo" trap of declining performance in the post-epidemic era, it is also necessary to be able to adjust the business structure in a timely manner or divest non-essential equity, industry, branches, etc
.
In the future, under the law of the jungle of the weak and the strong, as leading enterprises expand their territory and mergers and acquisitions, more and more enterprises will embark on the road of
"selling factories".
Whether this kind of "selling yourself" will usher in a profit recovery focused on the main business, or whether it will fall apart on the road to black, or even collapse and dissolution, will depend on the strategy and actions
of these enterprises under the deteriorating peripheral environment.
Under the Matthew effect, the chemical market will show a situation where
the stronger the stronger, the ice and fire are dual.