IVL goes cold on proposed Turkey deal

SET-listed Indorama Ventures Plc (IVL), the world’s leading petrochemical producer, has withdrawn its plan to acquire 51% of Sasa Polyester Sanayi AS in Turkey because the deal was too expensive.

“The company would like to inform you that both sides have mutually agreed to withdraw from implementing the acquisition of Sasa,” said secretary Souvik Roy Chowdhury in a statement informing the Stock Exchange of Thailand.

DK Agarwal, IVL’s Bangkok-based chief executive for feedstock and polyethylene terephthalate (PET) business, said the deal worth about US$62 million would take a long time to break even. “The deal was priced too high and our company cannot afford that,” he said.

But the decision would have no impact on IVL’s core business as it would focus on its PET footprint in Turkey. “The company’s policy is to seek another merger and acquisition in the PET business, which is a big market,” he said.

Last week, IVL announced it had acquired 100% of a PET resin plant in Turkey to become the No.1 PET producer in Turkey and Southeast Europe.

IVL last year announced its plan to spend 20 billion baht on mergers and acquisitions.