The acquisition can help Chevron Phillips Chemical Company expand its footprints in the polystyrene and resins market, which is used across a range of industries.
According to sources familiar with the matter at hand, Chevron Phillips Chemical Company, a joint venture between Chevron Corp and Phillips 66, has made a bid to acquire Nova Chemicals Corp for more than $15 billion including debt.
Chevron Phillips Chemical, one of the world’s top petrochemical producers, would gain scale and expand its footprint through the acquisition of Nova Chemicals, whose expandable polystyrene and resins are used in a range of industries, from construction to packaging.
Incidentally, Mubadala Investment Co, Abu Dhabi’s sovereign wealth fund which is the owner of Nova Chemicals, has been exploring a sale of the Canadian plastics maker since the beginning of this year.
Sources have cautioned that there is no certainty that Mubadala will accept Chevron Phillips Chemical’s offer.
Sources have preferred the cover of anonymity since the negotiations are private confidential.
Nova Chemicals, Mubadala, Chevron and Phillips 66 did not immediately respond to requests for comment.