MEXICO CITY—Grupo Kuo and Repsol have gained approval from European Union and Mexican antitrust authorities for the integration of their synthetic rubber and chemical accelerators businesses into Dynasol, their 50/50 joint venture.
As part of the new deal, Kuo will provide Dynasol with its SR solution and nitrile rubber units in Altamira, Mexico, and China as most of its production is allocated to the tire industry. Repsol will contribute its rubber vulcanization accelerators unit, General Quimica, located in Alava, Spain.
The deal modifies an existing shareholders agreement for the integrated joint management of Dynasol, which will be headquartered in Madrid. The JV will have operations centers in Spain, Mexico, and China, as well as offices in these countries and the U.S.
“The transaction will be completed in the coming weeks, after which Grupo Kuo will receive the positive net cash flow derived from the transaction,” Grupo Kuo said in a news release.
In April, Repsol and Grupo Kuo have agreed to extend their Dynasol joint venture with the aim of making it a top 10 player in the global synthetic rubber market.
Dynasol is to focus, particularly, on developing products for the high-performance tire sector, which currently accounts for 70 percent of SR demand worldwide.
Spanish group Repsol and Kuo have been equal partners in Dynasol since 1999. The JV claims to be the world's second largest producer in asphalt modification and a leader in other applications such as adhesives, sealants and technical compounds.
With estimated revenues of $750 million, Dynasol has facilities in Altamira, Mexico, and in Santander, Spain, and is starting up a new plant in Liaoning, China.