Westlake Chemical raises bid for Axiall

: LPG, Petrochemicals
16/04/04

Westlake Chemical raised its bid to acquire rival Axiall to $3.1bn in cash, stock and debt, up 17pc from its original proposal.

Axiall's board rejected the offer but said it was not opposed to a deal if Westlake accurately valued it for Axiall shareholders.

"... the value you currently propose simply ignores the high quality of our assets, the significant growth potential of our business and the powerful synergies available in a combination," Axiall chief executive Timothy Mann wrote in a letter to Westlake.

Axiall said Westlake undervalued the value of the synergies between the two companies, estimating combined cost reductions of $270mn, not the $60mn estimated by Westlake.

Houston-based Westlake called Axiall's estimate "unrealistic" in a letter urging shareholders to vote to replace Axiall's board. It intends to nominate its own candidates to Axiall's board.

Axiall has not yet scheduled the date of its 2016 annual shareholders' meeting.

Axiall manufactures chlor-alkali and chlorovinyls. Westlake manufactures olefins and vinyls.

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25/12/16

Viewpoint: European HVO prices unlikely to ease in 2026

London, 16 December (Argus) — Northwest European hydrotreated vegetable oil (HVO) premiums have firmed on the year in 2025, setting the stage for continued strength as the market braces for higher blending targets in 2026. Premiums strengthen ahead of 2026 targets The Argus HVO Class II fob ARA premium to gasoil averaged $1,075/m³ during January-November, compared with $683/m³ in 2024. The premium firmed to $1,650/m³ on 21 October — a more than three-year high — driven by stronger demand from obligated parties rushing to meet RED targets before the end of the year. Increased consumption against relatively stable production has tightened supplies, and planned maintenance closures at European and Chinese facilities during the fourth quarter may continue to support values into early 2026. Germany's planned legislative changes in 2026 abolishing double-counting of Annex IX feedstocks could significantly boost HVO demand, as higher absolute volumes of biofuel will be needed to meet GHG reduction quotas, which then supports demand for drop-in fuels like HVO. The Netherlands is also planning an end to double counting and a switch to a greenhouse gas savings-based mandate, which could amplify demand in 2026. Trading activity reflects the bullish demand outlook — 888,000t of Class II futures traded on Ice in October, surpassing the previous record of 717,500t in June. Open interest now extends to December 2026, signalling confidence in sustained liquidity. Spot market activity has also picked up in 2025, with Argus Open Markets (AOM) volumes traded for HVO Class II reaching 122,000t in January to November 2025, surpassing the 2024 total of 44,000t. Producers tilt towards HVO over SAF EU sustainable aviation fuel (SAF) targets kicked in at 2pc this year and with this, producers are recalibrating output strategies. Definitive EU anti-dumping duties on Chinese biodiesel and HVO were imposed in February , and EU anti-dumping and anti-subsidy measures already apply to HVO and biodiesel originating from the US and Canada. The China duties do not apply to SAF, but US duties do. HVO and SAF are made from oils and fats via hydrotreatment, but HVO requires fewer processing steps, usually making it the cheaper grade. But HVO Class II has often maintained a premium over SAF throughout 2025 because of different market fundamentals. This encouraged European producers to maximise HVO output over SAF. But tight SAF supply towards year-end — driven by export restrictions from China — pushed SAF premiums above Class II, with the SAF premium over HVO averaging $292/t in November. In October, some additional Chinese producers secured SAF export licences, and with the SAF mandate remaining at 2pc in 2026, European producers are expected to favour HVO production while SAF imports from duty-free China and Singapore fill the gap. The UK Trade Remedies Authority said in late November that it plans to recommend that the government places countervailing duties on US-origin HVO from March. Imports of US HVO into the UK have already declined this year because of the ongoing investigation, and participants expect volumes to fall further. To meet mandates, the UK is expected to lean more heavily on used cooking oil-based biodiesel, while some blenders may also look to secure supply from Nordic producers. By-products soften The Argus bionaphtha fob ARA price averaged $1,541/t in January-November, compared with $1,675/t across 2024. Despite the decline, premiums have recently been supported by stronger HVO and SAF prices, with used cooking oil-based bionaphtha a viable drop-in blending alternative to meet mandates. Looking ahead, participants expect that firm HVO prices will sustain higher bionaphtha premiums in 2026, while voluntary demand, particularly from petrochemical manufacturing, could provide additional support to the market. The biopropane premium to its propane counterpart at the ARA hub fell during 2025, with third quarter levels hitting record lows since Argus began the assessment in October 2023. Argus biopropane fca ARA outright averaged around $1,408/t in January–November, down from $1,597/t in 2024. Although HVO and SAF output have boosted biopropane supply, demand remains constrained without mandated use. Looking ahead, premiums are expected to stay capped unless government incentives accelerate adoption . By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IG4 moves closer to Braskem control

25/12/15

IG4 moves closer to Braskem control

Sao Paulo, 15 December (Argus) — Latin America's largest petrochemical company Braskem said it received notice that its controlling shareholder Novonor has signed a 60-day exclusivity agreement with private equity firm IG4 to buy its shares of Braskem and credits guaranteed by them. Braskem said IG4 also has an agreement with Novonor's creditor banks to acquire all credits against Novonor and related entities that are secured by Braskem shares, worth close to R20bn ($3.71bn). If implemented, a fund advised by IG4 or an affiliate would become the direct or indirect holder of Braskem common and preferred shares representing 50.1pc of voting capital and 34.3pc of total capital. Novonor would retain preferred shares equal to 4pc of Braskem's capital, without governance rights beyond those set by law. The transaction must be approved by Brazil's antitrust watchdog Cade. In July Cade cleared without restrictions a proposed sale of Novonor's controlling stake to Petroquimica Verde, an investment fund linked to businessman Nelson Tanure. While that approval removed a key regulatory hurdle it did not finalize the transaction, which expired after a 90-day exclusivity period. The competition for Braskem's ownership it taking place amid financial struggles for the company and intense market volatility. Fitch Ratings recently downgraded the company's credit rating to CCC+ from BB-, citing refinancing risks and persistent negative free cash flow. By Isabela Mendes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU to dilute Ice vehicle phase out: German lawmaker

25/12/15

EU to dilute Ice vehicle phase out: German lawmaker

Brussels, 15 December (Argus) — The European Commission is likely this week to dilute its plan to phase out sales of new internal combustion engine (Ice) vehicles by 2035, according to a lawmaker. "The ban on internal combustion engines is history," said Manfred Weber, the chair of parliament's largest centre-right group EPP. He said the commission will present on 16 December an automotive package that "will revise the CO2 standards for cars, reversing the disastrous ban on internal combustion engines". Weber is a member of Germany's CDU/CSU party, as is commission president Ursula von der Leyen. German chancellor Friedrich Merz has called on the EU to allow the sale of vehicles with highly efficient combustion engines, plug-in hybrids and range-extender EVs beyond 2035. This had faced pushback, with more than 150 European e-mobility firms requesting the commission "stand firm" on its 2035 target. An EU official said the target is now likely to be for a 90pc GHG reduction from 2035 for new vehicles. "As it stands the targets for 2030, but also 2035, are not realistic," said Sigrid de Vries, director general of the European Automobile Manufacturers' Association (ACEA). "Even with a 90pc target [for reducing GHG by 2035], make no mistake, that will be very, very challenging." The European motor industry has already flagged the possibility of huge fines for manufacturers should they fail to meet existing emissions targets, which are for a 15pc reduction by 2029 compared with a 2021 baseline, and a 55pc reduction from the same baseline in 2030-34. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Mitsui Chemicals to raise S Korea MDI output

25/12/15

Japan’s Mitsui Chemicals to raise S Korea MDI output

Tokyo, 15 December (Argus) — Japanese petrochemical company Mitsui Chemicals plans to boost output capacity of its methylenediphenyl diisocyanate (MDI) plant in South Korea's South Jeolla province by May 2027. Mitsui Chemicals aims to raise MDI production capacity at the plant by 100,000 t/yr to 710,000 t/yr, from 610,000 t/yr, the company said on 15 December. Kumho Mitsui Chemicals, a 50:50 joint venture between Mitsui and South Korean chemicals firm Kumho Petrochemical, operates the plant. The company plans to begin construction in February 2026. It expects demand for MDI, a core material for polyurethane, to continue growing because of decarbonisation and economic growth, Mitsui Chemicals said. MDI is used for various products including automotive components, furniture, bedding and heat insulation for houses. The company believes the shift towards decarbonisation will drive MDI consumption for heat insulation, while economic growth will enhance demand for more comfortable cars and households. Mitsui Chemicals also expanded MDI production capacity at the plant by 200,000 t/yr to 610,000 t/yr in 2024 . The prospect of MDI demand growth has prompted fellow Japanese petrochemical producer Tosoh to build an MDI splitter in south Vietnam's Ba Ria–Vung Tau province, aiming to begin commercial operations by October 2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Aramco Jafurah project still in commissioning: Resend

25/12/15

Aramco Jafurah project still in commissioning: Resend

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