Moscow, April 23, 2021. SIBUR and TAIF have started merger of petrochemical businesses of the companies.
As part of the merger, on the basis of SIBUR Holding PJSC a company will be created , where the current shareholders of TAIF JSC will receive a 15% share in exchange for the transfer of controlling stake of the Group, consisting of petrochemical and energy companies. The remaining stake of TAIF JSC may be subsequently purchased by the merged company.
The transaction will be completed subject to passing the necessary corporate procedures and obtaining regulatory approvals.
The creation of the merged company will increase stability of its petrochemical business and its international competitiveness, create more opportunities for growth of the Russian petrochemical industry in view of its high capital intensity and for further growth of chemical non-resource exports. It will result in the creation of new jobs and provide new opportunities for addressing sustainable development and environmental issues. The company will gain a large-scale synergy effect through diversifying its feedstock base, optimizing distribution and logistics, developing research and development activities, and improving the operational efficiency of assets. After the completion of all investment projects that are underway, the consolidated company will enter the TOP-5 global leaders of polyolefins and rubbers producers.
The merged company will ensure efficient distribution of raw material streams required for full capacity utilization and further development of the petrochemical cluster in Tatarstan, and continue to finance the approved investment program of TAIF JSC, develop the group's assets, and preserve accumulated experience of TAIF in business management and human capital within the group's enterprises.
Dmitry Konov, Chairman of the Management Board of SIBUR Holding PJSC:
"TAIF Group has a unique product portfolio and technologies that, together with SIBUR's competencies, will allow the merged company to successfully implement an ambitious growth program. Merging our assets and professional teams will allow us to increase the capacity of leading petrochemical enterprises and significantly strengthen the position of the Russian petrochemical industry in the global market."
Chairman of the Board of Directors, TAIF JSC, Albert Shigabutdinov:
The merging of our companies carries a huge potential for the development of the domestic petrochemical industry. For TAIF Group, this will significantly accelerate the implementation of projects included in the TAIF Group's Development Strategy until 2030, the amount of investments for which will be more than 1.5 trillion rubles in the next 10 years, increase the capacity of our enterprises, expand the commercial product slate. By 2030, a significant increase in tax payments is expected, including to the consolidated budget of the Republic of Tatarstan up to 50 billion rubles per year.
SIBUR is the largest integrated petrochemical company in Russia and one of the most dynamically developing companies in the global petrochemical industry with more than 23 thousand employees, including 5 thousand employees of NIPIGAS. The unique vertically integrated business model allows SIBUR to create highly competitive products that are used in the production of consumer goods and automobiles, construction, energy, as well as in the chemical industry and other industries in 90 countries around the world.
SIBUR processes by-products of oil and gas production and thereby contributes to the reduction of CO2 emissions from their combustion. In 2020, SIBUR's revenue amounted to USD 7.2 billion. EBITDA – USD 2.5 billion . Over the past 10 years, SIBUR has implemented a number of large-scale investment projects for the amount of about 1 trillion rubles.
TAIF JSC is the parent company of the largest non-public Group of the Russian Federation. TAIF JSC was established in August 1995.
The Group operates in many areas, the key spheres are: oil and gas processing, chemistry and petrochemistry, energy and investment activities. TAIF Group's chemical and petrochemical companies produce 581 products, the major share of which falls on synthetic rubbers, various grades and types of polyethylene, polypropylene, polycarbonate and styrene plastics.
Following the results of 2020, the share of TAIF Group in the total production of the Russian Federation was as follows: rubbers – 64%, plastics – 28%, while the TAIF Group is the only manufacturer of polycarbonates, EVA and of number of other in-demand polymer products in Russia. The total number of employees of TAIF Group is 36 thousand people.
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