Willkie Advises Arkema on the Contemplated Sale of its Functional Polyolefins Business

October 29, 2019

The Paris office represented Arkema on the contemplated sale of its Functional Polyolefins business to South Korean chemicals producer SK Global Chemical.

The Paris office represented Arkema on the contemplated sale of its Functional Polyolefins business to SK Global Chemical, a major chemicals player in South Korea and a subsidiary of SK, the large South Korean conglomerate. With this project, Arkema continues its shift towards specialty chemicals and advanced materials.

The Functional Polyolefins activity represents sales of approximately €250 million. It comprises ethylene copolymers and terpolymers for the food packaging, cable, electronics and coatings markets, and leverages well-known brands: Evatane®, Lotryl®, Lotader®, Orevac®.This activity employs around 100 people in France with an international sales network of around 30 people.

Offering a highly complementary fit with SK Global Chemical’s existing portfolio of activities, Arkema’s Functional Polyolefins would enable the company to consolidate its position in the packaging market and enter new industrial markets such as cable manufacturing. The proposed disposal is subject to an information and consultation process involving Arkema’s employee representative bodies and the approval of the relevant antitrust authorities.

The Willkie team was led by national partner Grégoire Finance and included national partner Faustine Viala and associates Louis Jambu-Merlin, Charles-Louis Pierron and Mathilde Vannson.

At Arkema, Hélène Monceaux (Head of M&A, Legal Department) and Layan Al Awwad (Legal Counsel M&A) led the transaction.