BP withdraws plan to acquire Chandra Asri
Monday, July 23 2001 - 02:47 AM WIB
A source at the Ministry of Trade and Industry told the daily that BP?s plan to acquire the majority stake in Chandra Asri and to merge the giant petrochemical company with its subsidiary PT Petrokimia Nusantara Interindo (PENI).
?According to information we received, the BP management is no longer interested in taking over CAPC and in its plan to merge it with PENI,? the source was quoted as saying by the business daily.
BP has proposed to take over the majority stake in CAPC, which is now facing an acute financial problem in repaying its massive debts. As part of the takeover plan, BP will merge its subsidiary CAPC. BP owns 75 percent in PENI, which also produces polyethylene.
The source said that the proposed merger of the company which would create one of the world?s major polyethylene producers is technically possible but it will be against the country?s anti-monopoly law.
PENI and CAPC produce about 450,000 tons and 300,000 tons of polyethylene a year, respectively. Unlike PENI, CAPC produces its own raw materials.(*)