The $2.1 billion purchase is designed to help Calgary-based Nova grow its U.S. Gulf Coast presence.
July 10, 2017 by Canadian Plastics
Nova Chemicals Corporation has completed its $2.1 billion acquisition of infrastructure supplier Williams Partners L.P.’s indirect 88.46 per cent ownership interest in the Geismar, Louisiana olefins plant.
As part of the deal, Nova Chemicals now owns approximately 525 acres of undeveloped land adjacent to the plant and Williams’ interest in the Ethylene Trading Hub in Mt. Belvieu, Texas.
“This is a game changer for our company, as it marks our entry into the U.S. Gulf Coast, which allows us to better serve our customers in the Americas,” said Todd Karran, president and CEO of Calgary-based Nova. “We are particularly pleased to welcome our talented new employees to Nova Chemicals and look forward to meeting and working alongside our new customers, suppliers and the communities in Louisiana and Texas.”
The plant produces approximately 1.95 lbs of ethylene annually and is located in the U.S. Gulf Coast region, the largest refining and petrochemical production hub in North America. With riverfront access, the adjacent land represents a significant opportunity for future growth, Nova said.
The acquisition was first announced in April 2017.