Russian petchems tie-up nears close

Russian petrochemicals firms Sibur and TAIF have finalised the terms of their merger, the companies said on September 24.

The combined business will be among the five biggest producers of polyolefins and rubber products in the world. TAIF shareholders will receive a 15% stake in the merged entity in exchange for transferring 50% plus one share in TAIF. The parties have also agreed on the early exercise of an option for Sibur to acquire the remaining share of TAIF. 

Sibur's financial obligations in the second phase of the transaction will be secured by several issues of exchange-traded bonds," the companies said. "As a result, in a matter of days required to finalise the deal the combined entity will consolidate 100% of the shares of TAIF Group, which includes petrochemical and energy companies."

The merger was first announced in April.