This article first appeared in The Edge Financial Daily on May 17, 2019

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

The full cash consideration is subject to customary completion adjustments, according to PetChem’s stock exchange filing yesterday. 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.The group has inked a sale and purchase agreement for the acquisition. Once completed, Da Vinci will be wholly owned by 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 in a statement.