(Yicai Global) Oct. 16 -- Sinochem International, part of one of China's four big state oil companies, will acquire ELIX Polymers for EUR144 million (USD166.8 million) with the aim of introducing to China the Spanish engineering plastics maker's patented technology for acrylonitrile butadiene styrene polymer.

Sinochem International's Singaporean unit will set up a special vehicle in Spain to complete the takeover from Global Arlington, a holding company with no other business apart from ELIX, the Beijing-based firm said in a statement yesterday. The unit will own an almost 75.9 percent stake in the Spanish vehicle, and its partners will hold the rest. The final price will be determined when the deal is completed.

The purchase will enable Sinochem International to gain world-leading technology in modified plastics as well as a path to its commercial development. It will also bring ELIX's unique modified plastics technologies to China by setting up plants for ABS and ABS alloy material modified plastics in the east of the country where demand is strong. Along with other applications, it aims to use this advantage to further its position in the field of autos, electronics, electrical appliances and healthcare.

Parent company Sinochem will contribute about CNY153 million (USD22.1 million) to the deal, which is subject to antitrust reviews by Germany and Poland, while Sinochem International will extend a loan of EUR45 million to help cover the target company's arrears.

ELIX Polymers is a leading manufacturer of ABS resins and derivatives in Europe with a head office in Tarragona, Spain. Formed in 1975, it became an independent engineering plastics developer in 2012 due to EU antitrust policy restrictions.

Editor: William Clegg