Covestro Sells JV Shares In Pearl Covestro Polyurethane Systems
Covestro will sell its 51 percent share in the joint venture, Pearl Covestro Polyurethane Systems FZCO, which operates a system house business in Dubai, to the current co-shareholder Pearl Industries Overseas Ltd.
The sale is expected to generate proceeds in the mid-single-digit million-euro range.
This aids Covestro’s ongoing portfolio optimization process and marks a further step in the strategic focusing of the polyurethanes segment. The systems house business will continue to operate as Pearl Polyurethane Systems after the transaction is concluded. Covestro will remain a key supplier of polyurethane raw materials based on the contract signed.
The joint venture was established under the former name BaySystems Pearl in Dubai (United Arab Emirates) in 2006 and has supplied Polyurethane Foam systems for several projects in the region.
Subject to regulatory approval, the closing is expected in the first half of 2021. (MT)