Huntsman

History

2023: S8 Capital agreed to buy back Huntsman assets in Russia

The Russian holding S8 Capital has agreed to redeem the assets of the American chemical company Huntsman in the Russian Federation. This became known on January 24, 2024.

At the same time, the deal, according to Kommersant, was concluded back in 2023. The Federal Antimonopoly Service (FAS) approved the sale of a 100% stake in Huntsman CIS LLC and Huntsman-NMG JSC to Industry Investments, the regulator said. The FAS believes that the deal will not lead to restrictions on competition in the wholesale market for chemical products and the production of paints and varnishes. Financial terms and other transaction parameters are not disclosed.

S8 Capital agreed to redeem the assets of the American chemical company Huntsman in the Russian Federation

Huntsman owned a plant in Obninsk, which produces polyurethane products for construction, automotive, pipe and footwear industries. In addition to Obninsk, the company has representative offices in Togliatti, Moscow, St. Petersburg, Rostov-on-Don, Novosibirsk and Chelyabinsk. According to Advance Capital analyst Pavel Terentyev, the amount of the deal to sell Huntsman's Russian business could amount to 2.1-2.5 billion rubles.

In the third quarter of 2023, Huntsman announced the signing of an agreement on the sale of assets in Russia to a third party in September 2023 and hoped to exit this business by the end of that year. The company pointed to uncertainty in the timing of the completion of the exit from Russian business due to the need to obtain permission from the US, EU and Russian authorities.

Kommersant notes that on the scale of Huntsman Corporation, its business in the Russian Federation is small: the consolidated revenue of the entire corporation in the world reaches $8 billion. Pavel Terentyev says that by January 24, 2024 there was no news about the suspension of production at the Russian Huntsman plant, but it is known about a reduction in production.^[1]

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