KUALA LUMPUR (May 16): Petronas Chemicals Group Bhd (PetChem) is buying Netherlands-incorporated Da Vinci Group BV from its shareholders, who include, among others, funds managed by Bencis Capital Partner, for €163 million (about RM760.8 million), to venture into the specialty chemicals business.

The full cash consideration is subject to customary completion adjustments, PetChem said in a stock exchange filing today.

Da Vinci is a private limited liability company with global operations involving own-brand reselling, formulating and manufacturing of silicones, lube oil additives and chemicals.

"The completion of the acquisition is subject to fulfilment of certain conditions precedent. The acquisition is PetChem's first foray into special chemicals via inorganic growth," PetChem said in a statement.

Once completed, Da Vinci will become a wholly-owned subsidiary of PetChem.

"The acquisition is a strategic entry point for PetChem's specialty chemicals portfolio. The acquisition accelerates the realisation of PetChem's vision to create value by diversifying its product portfolio into differentiated and specialty chemicals," said the group's managing director/chief executive officer Datuk Sazali Hamzah.

"Da Vinci provides a compelling access into the growing silicones business. The acquisition enables PetChem to enhance its competitive position in attractive end-markets such as personal care, construction, paints & coatings, electronics, automotive and healthcare, particularly in the Asia Pacific region," he added.

PetChem shares slipped 1 sen or 0.11% to close at RM8.84, giving it a market capitalisation of RM70.72 billion.