Evonik and PeroxyChem, two leading chemical companies, have announced a merger agreement that will combine their expertise and resources in the production of peroxide chemicals. The merger is expected to close in the first half of 2020 and will result in a new joint venture company that will be 65% owned by Evonik and 35% owned by PeroxyChem.
Peroxide chemicals, which are widely used in a variety of industries including pulp and paper, textiles, and personal care products, are in high demand due to their versatile properties and effectiveness in various applications. With this merger, the new company will become one of the world`s leading producers of peroxide chemicals, with a comprehensive product portfolio that includes hydrogen peroxide, peracetic acid, and sodium percarbonate, among others.
The merger agreement will not only strengthen the companies` positions in the market but will also create significant cost synergies through the optimization of production processes and the shared use of infrastructure and resources. The joint venture will also benefit from the complementary geographical footprint of both companies, with PeroxyChem bringing its expertise in North America and Evonik its strength in Europe and Asia.
The agreement is a strategic move for both companies, enabling them to take advantage of opportunities in the growing peroxide chemical market. It also reflects Evonik`s commitment to expand its specialty chemicals portfolio and strengthen its position as a leading chemical company.
The merger is subject to regulatory approvals and customary closing conditions, but once completed, the new company will take advantage of the expertise and resources of both Evonik and PeroxyChem to provide customers with high-quality and innovative solutions in the peroxide chemicals market.