Publish Date : 15-Oct-2013
State-owned investment vehicle Oman Oil Company's (OOC) decision to acquire 100 per cent of OXEA, the world's largest supplier of Oxo chemical products, augurs well for the Omani government's long-term goal to spur the development of an integrated chemical platform in the Sultanate. The deal, estimated by various international reports to cost $2.4 billion, will position Oman Oil Company as a vertically integrated global chemicals leader. Additionally, it will help give new impetus to the growth of a major petrochemicals cluster in the Duqm Special Economic Zone (SEZ), where OOC is already a major investor in refining, petrochemicals and energy infrastructure in around this emerging industrial hub.
Nasser bin Khamis al Jashmi, Under-Secretary of the Ministry of Oil & Gas and Chairman of OOC, signed the agreement in the presence of Ronald Ayles, Managing Director and Head of Chemicals at Advent International, one of the leading private equity firms worldwide, and Reinhard Gradl, Chairman of the OXEA Group. Upon receipt of antitrust approvals and satisfaction of other conditions, Advent International will sell its entire equity to OOC. Germany-headquartered OXEA is ranked first in the world as a supplier of Oxo chemicals to the merchant market and second as producer of Oxo chemicals globally in products like aldehydes, esters and carboxylic acids. OXEA was built from two completely separate businesses which Advent International had acquired in 2007. Within less than seven years Advent created a market leader in the Oxo segment by contributing comprehensive sector and market know how.
Today, OXEA has operations in the Americas, Europe and Asia and has the broadest portfolio producing more than 70 Oxo chemicals for customers in a wide range of industries, such as pharmaceuticals, aromas and scents, paints and lacquers, adhesives, safety glass, lubricants, cosmetics and plastics, selling 1.3 million tonnes. This acquisition will expand OOC's downstream portfolio by bringing world-class technology and knowhow to Oman through existing assets and new investments. "This landmark acquisition reaffirms Oman Oil Company's role in supporting the goals outlined in the Sultanate's Vision 2020 which aims to diversify the economy by reducing dependence on oil, growing In Country Value and maximizing the potential of Oman's geographic location to reach both established and emerging markets," said Al Jashmi.
"It is necessary to continue enriching the national economy through strategic ventures that have the right mix of technology and knowhow. This is a monumental step for Oman Oil Company as we continue to expand our global footprint while positioning the Sultanate in the international arena."
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