Nova Chemicals acquires Williams' interest in Louisiana olefins plant
Nova Chemicals has completed the previously announced acquisition of Williams Partners' indirect 88.46% ownership interest in the US olefins plant in Geismar, Louisiana.
With the $2.1bn acquisition now complete, Nova Chemicals owns nearly 525 acres of undeveloped land adjacent to the plant and also Williams’ interest in the Ethylene Trading Hub in Mt. Belvieu, Texas.
Nova Chemicals president and CEO Todd Karran said: “This is a game-changer for our company, as it marks our entry into the US Gulf Coast, which allows us to better serve our customers in the Americas."
Located in the US Gulf Coast region, the acquired plant produces nearly 1.95 billion pounds of ethylene annually.
With riverfront access and the adjacent land, the facility provides a significant opportunity to Nova Chemicals for future growth.
The acquisition is expected to support the company’s strategy to meet growing demand of polyethylene in the Americas.
In this transaction, HSBC Securities (USA) acted as the exclusive financial advisor to Nova Chemicals, while Orrick, Herrington & Sutcliffe and Liskow & Lewis served as legal counsel.