Page 55 - Plastics News July 2019

BusiNess News

Berry Global Group buys plastic Saudi Aramco-backed Ratnagiri

packaging supplier RPC Group refinery may be shifted to Raigad

for $6.5bn
he $44 billion refinery and petrochemicals project
Tbeing implemented by Ratnagiri Refinery and
erry Global Group has bought global plastic packaging
Bsupplier RPC Group, securing the equity interest in Petrochemicals Ltd (RRPCL) may come up in Roha, a
the company and its debts for around $6.5bn. The price city in Raigad district of Maharashtra, according to
of the equity interest reports in the Mint . The reports, quoting officials said,
was said to be around “The refinery may come up in Roha. The companies
$4.3bn, which was involved have given their consent. The Maharashtra
paid in cash, with chief minister is likely to make a formal announcement
the company’s net next month," said one of the officials cited above.
debt and transaction- RRPCL is a joint venture between Saudi Aramco,
related costs in the Abu Dhabi National Oil Company (Adnoc), and three
deal amounting to state-run oil marketing companies, Indian Oil Corp.
the remaining $2.2bn (IOCL), Hindustan Petroleum Corp. (HPCL) and Bharat
of the fee.According Petroleum Corp. (BPCL). Saudi Aramco and Adnoc will
to the US-based plastic packaging products maker, the jointly own 50% of the refinery, with the remaining 50%
merger will create a major global supplier of valued- being owned by the Indian oil companies. The land bank
added protective and plastic packaging solutions.The for the project could be around 10,000 acres. “We are
merged entity will have more than 290 locations across assuming that the Maharashtra Industrial Development
Europe, Asia, Africa, Australia and North and South Corporation has secured the land this time and the
America, employing more than 48,000 people with transfer process would be smooth. The land that has
sales of approximately $13bn. Berry chairman and chief been acquired and is being acquired are different
executive officer Tom Salmon said: “We are very excited pieces of land," said one of the officials mentioned
to move forward together as a global plastic and recycled
packaging industry leader, serving thousands of customers
with our high-quality, innovative and protective solutions,
along with the industry’s most diversified and expansive
manufacturing footprint. “The acquisition of RPC will give
us the opportunity to leverage our combined know-how
in innovative material science, product development and
manufacturing technologies to create significant value
for our shareholders.“Through this shared approach, we
anticipate approximately $150m in annual synergies.”To
finance the transaction, Berry used a portion of the
proceeds from selling 4.875% of its first priority senior
secured notes due by 2026 raising $1.25bn to finance the
deal. Another $500m of funds were generated through
the company’s sale of 5.625% of second priority senior above. The Ratnagiri refinery project, announced in
secured notes that were due for the same year.In addition, December 2015, was to be commissioned by 2022,
two incremental term loans to the value of $4.25bn and but delays in land acquisition pushed the deadline to
$1.075bn contributed to the payment of the deal, which 2025. The pre-feasibility study of the 60 million tonnes
also allowed a separate Berry loan to be refinanced.RPC per annum (mtpa) refinery has been completed. The
offers plastic and recycled products for packaging and refinery will be capable of processing 1.2 million barrels
selected non-packaging markets. It currently operates 153 of crude oil and produce 18 million tonnes per annum
manufacturing locations across 33 countries, employing of petrochemicals. It will provide direct and indirect
approximately 25,000 people. employment to up to 150,000 people.

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55 July 2019 Plastics News