Mideast firm completes Nova purchase
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Nova Chemicals Corp. became part of a Middle East-based portfolio of petrochemical ventures yesterday when International Petroleum Investment Co. bought it for $2.3 billion.
Until it purchased Nova, IPIC's $14 billion worth of investments had been concentrated in Europe, Asia, Africa and Australia.
"Nova Chemicals will complement IPIC's existing petrochemical portfolio by providing access to North American markets and distribution channels, world-class technology and a wider range of product," H.E. Khadem Al Qubaisi, IPIC's managing director, said in a statement issued on behalf of both companies.
Nova, which makes chemicals and plastics at facilities primarily in Canada, operates its executive center in Moon.
IPIC and Nova in February announced the deal through which Nova's shareholders will receive $6 per share and Nova will become privately held as its stock is delisted from the New York and Toronto exchanges.
At that time, Nova was searching for a merger or cash infusion to save it from bankruptcy because of significant debt and ramifications of the economic downturn.
"We are excited about the future opportunities for Nova Chemicals to grow in Alberta and elsewhere," Chris Pappas, Nova's president and chief executive, said in the statement.
Nova has about 2,700 employees worldwide, including about 250 in Moon and about 275 at a plant in Beaver County. The Beaver County facility is slated to lose 30 to 45 jobs this year when it quits producing Dylark, a resin used in car interiors. That production line is shutting down because of slow demand.
IPIC is based in Abu Dhabi, United Arab Emirates, and began in 1984 as an investment vehicle for the government.
First Published July 7, 2009 12:00 am