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Celanese to Acquire Linde’s Synthesis Gas Production Unit

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Jan. 17 2019, Updated 8:05 a.m. ET

Celanese to acquire synthesis gas production unit

On January 15, Celanese (CE) announced that it entered into a definitive agreement with Linde (LIN) to acquire a synthesis gas production unit with a capacity to produce 365 kilotons per year. The deal is expected to close soon, subject to customary regulatory approvals. Celanese didn’t disclose the financial aspects of the deal.

The production unit is located in Celanese’s Clear Lake acetyl intermediates manufacturing facility in Pasadena, Texas. Syngas is an intermediate resource required to produce acetic acid. The acquisition enables Celanese to produce raw materials. The acquisition could help to bring down acetic acid’s production cost.

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Todd Elliott, Celanese’s senior vice president for the acetyls division, said, “By acquiring this syngas production unit, Celanese will have the capability of producing a critical raw material for the world’s largest acetyl intermediates production facility. Linde is currently the primary carbon monoxide supplier to the Clear Lake facility, and the acquisition of this synthesis gas production unit will provide Celanese with future productivity and growth configuration options.”

Stock update

So far in 2019, Celanese has remained positive. Celanese has gained 5.2% and has managed to outperform the S&P 500 (SPY), which has returned 4.3%. Eastman Chemical (EMN), LyondellBasell (LYB), and Westlake Chemical (WLK) have gained 5.0%, ~2.0%, and 12.9%, respectively.

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