COLOGNE, Germany—German specialty chemicals company Lanxess A.G. is expecting to complete the approvals process for its joint venture with Saudi Aramco in the first half of 2016, as scheduled.
A Lanxess spokesman confirmed that the Indian fair trade authority CCI approved the deal just before the end of the year 2015.
In a tweet on Dec. 29, the Competition Commission of India said it had considered “certain upstream and downstream products of the worldwide synthetic rubbers sector” as the relevant market for the deal.
“However, in the absence of any competition concerns, the relevant product and geographic markets be left open,” the regulator said.
“Regulatory authorities in a number of countries will need to approve the deal, not only the Indian Competition Commission,” the Lanxess spokesman said.
Most jurisdictions, he said, have already done so, but not all yet.
“We are pleased to confirm the process is progressing well and we expect completion of the approval process during the first half of 2016,” he said.
Lanxess and Saudi Aramco subsidiary, Aramco Overseas Co., announced their agreement to establish a joint venture for synthetic rubber on Sept. 22.
The total joint venture is valued at about $3.1 billion. Lanxess received about $1.3 billion from Aramco for its 50 percent stake in the company.
Lanxess will contribute its synthetic rubber business to the venture, which comprises its Tire & Specialty Rubbers and the High Performance Elastomers business units. Together the businesses will have 20 production facilities in nine countries and some 3,700 employees and additional support staff.
Saudi Aramco will provide the joint venture with competitive and reliable access to strategic raw materials over the medium term, Lanxess said.
The joint venture will be managed by a holding company headquartered in the Netherlands. The CEO will be appointed by Lanxess and the chief financial officer will be appointed by Aramco Overseas Co., a subsidiary of Aramco.
The spokesman said the process of naming the venture is currently underway, but no final decision has been taken so far. He added that no decision on the final location for the venture's headquarters has been made either.
Each company will have equal representation on the venture's board of directors. Lanxess will consolidate the firm's financials.