LG Chem announced on August 16 that it would not participate in the final bidding for Continental Structural Plastics (CSP). Earlier, LG Chem had participated in the preliminary bidding together with LG Hausys in June this year. Under the circumstances, LG Hausys is likely to be the only LG Group subsidiary to take part in the final bidding and the Hanwha Group, a rival in the tender, is expected to feel less pressure than before.
In the meantime, LG Hausys announced that it would continue to try to acquire CSP in spite of the absence of LG Chem. CSP, which is estimated to be priced at 600 billion won at the least, is a U.S.-based company supplying advanced materials for vehicle weight reduction such as carbon fibers to GM, Ford, Chrysler, etc.
The Hanwha Group participated in the final bidding via Hanwha Advanced Materials, a subsidiary of Hanwha Chemical. The group had acquired Azdel, a U.S.-based auto parts manufacturer, for 60 billion won in 2007 and bought Heycoustics, a Germany company, for 15 billion won in March last year.
Not only LG Hausys and Hanwha Advanced Materials but also BASF and Mitsubishi are expected to join the bidding. Preferred bidder selection is scheduled for this month.