Ashurst advises PIC on major PO joint venture with SKC

The companies have agreed the enterprise value for the joint venture company of USD1,195m. Simon Fraser led the team, with assistance from Matt Hartsuyker, John King and Sara Malek and Shahd Amin.

SKC and PIC have agreed the enterprise value for the joint venture company of USD1,195m.

Ashurst advised Petrochemical Industries Company K.S.C. (PIC) on its joint venture with SKC Co. (SKC), involving the acquisition of a 49 per cent stake in SKC’s chemical business, including Propylene Oxide (PO) and Propylene Glycol (PG), and related joint venture arrangements.  PO is a base material for PPG (polyol) used in interior materials for automobiles, and PG is used in cosmetics and medicine. SKC and PIC have agreed the enterprise value for the joint venture company of USD1,195m.

Commenting, lead partner Simon Fraser said, “We are privileged to have assisted PIC with this important transaction, and the establishment of the strategic joint venture with SKC.  The transaction builds further PIC’s capacity in downstream derivatives, and is an important step towards KPC’s 2040 petrochemical strategy.”

Simon Fraser led the Ashurst team, with assistance from senior associate Matt Hartsuyker, counsel John King and associates Sara Malek and Shahd Amin (Corporate and M&A).  The M&A team was supported by a core team including senior associate Raquel Tarancon Plata, associate Johanna Armstrong and associate Will Keen (transition services), partner Hueyeon Kim, associate In Kim, and associate Woo Kim (Korea team), partner Kellech Smith (IP), and partner Neil Cuninghame, counsel Angie Ng and senior associate Christopher Eberhardt (Competition).