Latin America’s biggest PVC pipe and vinyl resins producer Orbia Advance Corp. has delayed the plans of divesting its Vestolit vinyl business due to the coronavirus pandemic.
The company stated that it has prepared to wait for the right environment to maximize shareholder value in any transaction involving the business.
The Vestolit vinyl business has 1.84 million metric tpa of polyvinyl chloride (PVC) capacity divided among sites in Germany, the US, Mexico, and Columbia.
Orbia, when still using the name Mexichem SAB de CV, purchased German PVC paste producer Vestolit GmbH from investment company Strategic Value Partners LLC (SVP Global) for EUR219 million (USD293 million).
Previously, on January 10, 2020, Orbia said that it was accessing the prospect of divestment or strategic alliances for the vinyl business in response to a media report that Apollo Management, Ineos, and Westlake Chemical were among the bidders.
Bloomberg estimated the price tag on the vinyl business to be up to USD4 billion.
