SK Global Chemical, a subsidiary of SK Innovation, announced on April 9 that its French subsidiary will put off a capital increase from the originally scheduled April 10 to May 11. The capital increase is designed to enable its French subsidiary to take over French chemical company Arkema’s high-functional polymer business.
SK Global Chemical originally planned to participate in the capital increase by its subsidiary, SK Functional Polymer, this month, but has decided to delay it by one month due to the spread of the novel coronavirus. The amount of the capital increase will be cut by 18 percent from 196.4 billion won to 160.2 billion won.
SK Global Chemical could not conduct due diligence as the French border was closed due to the COVID-19 outbreak. In addition, as international oil prices plunged, the acquisition price was lowered so the amount of the capital increase was also cut.
In October 2019, SK Global Chemical decided to take over the functional polymer business from Arkema and planned to wrap it up in the first half of in 2020. Arkema is the No. 1 player in the French polymer industry.