CHEMICAL MANAGEMENT

Kraton Corporation Enters Into Definitive Agreement To Be Acquired By DL Chemical Co., Ltd.

Kraton Corporation & DL Chemical Co., Ltd. | September 27, 2021

Kraton Corporation , a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, today announced that it has entered into a definitive merger agreement (the "Merger Agreement") pursuant to which DL Chemical Co., Ltd. ("DL Chemical"), a subsidiary of DL Holdings Co., Ltd. (formerly Daelim Industrial Co., Ltd.), will acquire 100% of Kraton in an all-cash transaction implying an enterprise value of approximately $2.5 billion. Under the terms of the Merger Agreement, Kraton stockholders will receive $46.50 in cash for each share of Kraton common stock they own.  As part of the transaction DL Chemical has conveyed that they have fully committed financing.

"Following an extensive review of a wide-range of strategic alternatives focused on maximizing value for the benefit of our stockholders, Kraton's Board has determined that the sale of Kraton to DL Chemical is in the best interest of Kraton stockholders. We believe the transaction provides immediate and certain value for Kraton stockholders, and represents an attractive premium of approximately 50% over Kraton's unaffected market valuation as of early July," said Kevin M. Fogarty, Kraton's President and Chief Executive Officer. "Moreover, we believe DL Chemical has the industry presence and resources to continue to support the growth of Kraton's business on a global scale".

"Consistent with our longstanding goal of maximizing value for the benefit of our stockholders, over the years Kraton's Board and management team have actively evaluated a wide range of strategic alternatives.  Today's announcement marks the culmination of the strategic review process for Kraton, resulting in a transaction that we believe provides significant value for Kraton stockholders.  In addition, we believe the scale and strength of the combined company will also benefit our customers and our employees, as it will expand Kraton's global reach while creating a robust platform to further support investment in the existing innovation pipeline and provide for further expansion of sustainable offerings,"

-Dan F. Smith, Chairman of Kraton's Board of Directors.

"DL Chemical has been conducting the petrochemical business responsibly within the DL Group for 46 years. After acquiring Kraton's Cariflex business last year, we have successfully integrated that business within the DL Group," said Sang Woo Kim, Vice Chairman and Chief Executive Officer of DL Chemical. "We also have been highly interested in Kraton's specialty polymer and bio-based chemical business, and this combination will allow us to provide our customers with a wider range of innovative products, while adding the ability to serve a diverse range of end markets in over 70 countries worldwide."

The Merger Agreement was unanimously approved by Kraton's Board of Directors, which has recommended that Kraton stockholders vote in favor of the transaction. The acquisition is subject to certain customary closing conditions, including the receipt of stockholder and regulatory approvals, and is expected to close by the end of the first half of 2022.

J.P. Morgan Securities LLC is acting as exclusive financial advisor, and King & Spalding LLP is acting as legal counsel to Kraton in connection with the transaction. Goldman Sachs is acting as financial advisor, and O'Melveny & Myers LLP is acting as legal counsel to DL Chemical in connection with the transaction.

ABOUT KRATON
Kraton Corporation (NYSE "KRA") is a leading global producer of specialty polymers and high-value performance products derived from renewable resources. Kraton's polymers are used in a wide range of applications, including adhesives, coatings, consumer and personal care products, sealants and lubricants, and medical, packaging, automotive, paving and roofing products. As the largest global provider in the pine chemicals industry, the company's pine-based specialty products are sold into adhesive, road and construction and tire markets, and it produces and sells a broad range of performance chemicals into markets that include fuel additives, oilfield chemicals, coatings, metalworking fluids and lubricants, inks and mining. Kraton offers its products to a diverse customer base in over 70 countries worldwide. Kraton, the Kraton logo and design are all trademarks of Kraton or its subsidiaries or affiliates.

ABOUT DL CHEMICAL
DL Chemical is a leading petrochemical company with more than 46 years of operational experience and unique technological know-how. Based in Korea, the company was the first petrochemical firm in the country to commercialize metallocene polyethylene and polybutene, as well as the first to export polybutene technology to the United States. DL Chemical is the world's largest producer of polybutene with a production capacity of 200 KTA year. DL Chemical has commercialized BOCD (Broad Orthogonal Co-Monomer Distribution) polyethylene and EPO (Ethylene-Propylene Oligomer) for only the second time worldwide. In March 2020, DL Chemical (as a part of Daelim Industrial Co., Ltd. prior to the split-off of DL Chemical) acquired Kraton's CariflexTM business for $530 million in cash.

Spotlight

Substances that could not be further broken down were referred to as elements. Thus, Proust deduced the so-called law of definite proportions: In a given chemical compound, the proportion by mass of the elements that compose it are fixed, independent of the origin of the compound or its mode of preparation.


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CHEMICAL MANAGEMENT

ALLIED COPPER REPORTS ADDITIONAL FINANCIAL AND TECHNICAL INFORMATION FOR VOLT LITHIUM CORP.

Allied Copper Corporation | November 25, 2022

Allied Copper Corp. is pleased to announce additional technical information and financial information regarding Volt Lithium Corp. As announced on October 31, 2022, Allied Copper has agreed to acquire 100% of the issued and outstanding shares of privately-held Volt, pursuant to a share purchase agreement dated October 31, 2022, among each of the shareholders of Volt. Through this Acquisition, Allied Copper is afforded a strategic opportunity to expand both its asset base and development focus to include a broader range of battery metals that represent key inputs supporting the global energy transition. Rainbow Lake Property Volt has acquired a 100% minerals interest in a lithium-brine project in northwest Alberta which is defined by nineteen contiguous Alberta Metallic and Industrial Mineral Permits. Details of the mineral permits are summarized in Schedule B of the Agreement, which has been filed on SEDAR at www.sedar.com. The Rainbow Lake Property is in northwest Alberta, approximately 80 kilometres west of the Town of High Level, Alberta. The west-central portion of the Property surrounds the Town of Rainbow Lake, Alberta, which region is historically famous for its substantial oil and gas reserves within the carbonate platform and reef complex portions of the Middle Devonian Elk Point Group. The Property can be accessed by Provincial Highway 58, and numerous secondary all weather and dry weather gravel roads and tracks that are serviced year-round due to oil and gas production operations in the area. Upper Keg River Formation Aquifer Brine Evaluation Volt’s initial exploration objective at the Rainbow Lake Property was to assess stratigraphically deep hypersaline formation water, or brine, from oil and gas reservoirs, or aquifers, within the porous portions of the Elk Point Group’s Upper Keg River Formations reef complexes for its lithium-brine potential. As per Government of Alberta subsurface brine compilations, historical Upper Keg River Formation lithium-brine analytical results within the boundaries of the Rainbow Lake Property include nine historical lithium assays of Upper Keg River Formation and Elk Point Group brines (the latter at depths that are correlative with the Upper Keg River Formation). The assays yield lithium-brine values that range between 29 and 44 milligrams per litre (“mg/L”) lithium with an average concentration of 38.3 mg/L lithium. To validate the historical lithium-brine assays, Volt commissioned a petro-company leasehold owner and active hydrocarbon producer from within a portion of the Property and Mr. Roy Eccles P. Geol. of APEX Geoscience Ltd. to complete two separate 2022 brine sampling programs at the Rainbow Lake Property. The Petro-Company collected two brine samples from two separate wells; one of which was not within the boundaries of the Property. The samples were analyzed by Sterling Chemical Inc.’s subsidiary lab, Camber Resource Services Ltd., who is not independent of Volt. The QP collected 25 brine samples from three oil and gas facilities and four producing wells within the Rainbow Lake Property in conjunction with the Petro-Company that is actively producing hydrocarbons from Upper Keg River Formation reservoirs. Quality assessment-quality control samples included four duplicate samples, seven brine lab-prepared lithium-brine standards, two blank samples (containing no lithium), and two check lab samples. The QP brine samples were analyzed at independent, commercial laboratories who are accredited and experienced in analysing petro-fluids. The QP assessed both the Petro-Company and QP-collected sample analyses, and concluded that the analytical results yield both ‘valid’ and ‘invalid’ Upper Keg River Formation brine geochemical results. The Petro-Company collected samples were removed because the samples were either from an off-property well or analyzed at a non-independent lab that returned lithium results that did not correlate well with the analytical results of the QP-collected samples. Four QP-collected sample analyses were also removed from the dataset because of suspected issues with contamination or the brine geochemical results were not compatible with representative Upper Keg River Formation aquifer brine. The contamination relates to high oil contents in the brine sample, or elevated iron and metal contents believed to be related to corrosiveness inhibitors used by the Petro-Company at a specific well that may have precipitated metals that are not representative of the true brine. With respect to the assessment of representative brine genuine Upper Keg River Formation samples in this dataset contain between 72,200 and 156,000 mg/L sodium; however, the QP-assessed invalid samples had very low sodium. Once the invalid brine analyses were removed from the database (n=6 analyses), the QP had no further significant issues or inconsistencies that would cause one to question the validity of the data. Brine analytical results are presented in Table 1 and include lithium-brine values from the three facilities and two wells. With respect to the QP-collected valid Upper Keg River Formation aquifer brine samples, brine from the wells yielded between 29.3 and 36.1 mg/L lithium with an average concentration of 33.0 mg/L lithium. Brine from the facilities yielded between 24.5 and 37.3 mg/L lithium with an average concentration of 33.6 mg/L lithium. Collectively, the brine analyses from Volt’s primary lab yielded between 30.6 mg/L and 37.3 mg/L lithium with an average concentration of 35.0 mg/L lithium. The QP concluded that the Volt sampling program validated the historical lithium-brine analytical results: 38.3 mg/L lithium versus 35.0 mg/L lithium. The similar lithium concentrations potentially demonstrates the chemical homogeneity of the Upper Keg River Formation aquifer underlying the Rainbow Lake Property. The sample program results also show that Volt could utilize the facilities for any future demonstration, or pilot direct lithium extraction test work, which is beneficial because the facilities represent multi-well collection points with high brine volume. Based on the results of the Rainbow Lake Property brine sampling program, Volt has commissioned APEX Geoscience Ltd. to prepare a technical report that will provide a geological introduction and exploration results of the Upper Keg River Formation aquifer brine assessment and include recommendations to advance the lithium-brine project. The technical report will be prepared in accordance with the Canadian Mining and Metallurgy Mineral Exploration Best Practice Guidelines (2018) and the disclosure requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects.

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CHEMICAL TECHNOLOGY

Lithium Americas Enters Strategic Collaboration Agreement with Green Technology Metals

Lithium Americas | September 21, 2022

Lithium Americas Corp. is pleased to announce it has entered a Strategic Collaboration Agreement with Green Technology Metals Ltd. to advance a common goal of developing an integrated lithium chemical supply chain in North America. “The collaboration between the groups has already commenced alongside Primero Group, making the combination of hard rock lithium development and processing one of world-renowned experience that will continue the growth of both businesses. Both GT1 and Lithium Americas have the shared objective of building the pre-eminent vertically integrated lithium business in North America. With the recent passing of the IRA, and the substantial domestic battery minerals sourcing requirements this imposes on car manufacturers seeking to attract consumer tax credits for their vehicles, the value of this end goal has increased further again.” GT1’s Director, Cameron Henry In North America, Lithium Americas is focused on developing its 100%-owned Thacker Pass project in Humboldt County, Nevada. The Company has received all federal and state permits necessary to begin construction and awaits a ruling on an appeal filed against the Bureau of Land Management on the issuance of the Record of Decision. The Company is actively preparing to commence construction, including planning early-works construction for late 2022, finalizing the selection of an engineering, procurement and construction management firm, hiring lead construction and project management roles, advancing financing and offtake discussions, and progressing the U.S. Department of Energy Advanced Technology Vehicles Manufacturing loan program. ABOUT GREEN TECHNOLOGY METALS GT1 is a North American focused lithium exploration and development business. GT1’s Ontario Lithium Projects comprise high-grade, hard rock spodumene assets (Seymour, Root and Wisa) and lithium exploration claims (Allison and Solstice) located on highly prospective Archean Greenstone tenure in north-west Ontario, Canada. GT1’s strategy is to build a vertically integrated lithium business in Ontario. ABOUT LITHIUM AMERICAS Lithium Americas is focused on advancing lithium projects in Argentina and the United States to production. In Argentina, Caucharí-Olaroz is advancing towards first production and Pastos Grandes represents regional growth. In the United States, Thacker Pass has received its Record of Decision and is advancing towards construction. The Company trades on both the Toronto Stock Exchange and on the New York Stock Exchange, under the ticker symbol “LAC”.

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CHEMICAL TECHNOLOGY

Koch Modular to Discuss Utilizing Extractive Distillation to Break Azeotropes at AIChE Southwest Process Technology Conference

Koch Modular | September 29, 2022

Koch Modular Process Systems, LLC a market-leading provider of engineered and fabricated modular reaction and mass transfer systems, will showcase its industry leadership and innovation at the 14th annual AIChE Southwest Process Technology Conference in Houston, Texas, September 29-30, 2022. Chemical engineers are tasked with designing complex separation processes for optimal product recovery and purification. At this year’s convention, Koch Modular will discuss the use of the separation process known as extractive distillation––a powerful technique to separate close-boiling and azeotropic mixtures. On Thursday, September 29th, 2022 at 2:00 pm CST, Koch Modular Vice President, Alan Erickson, will explore the often-overlooked path of extractive distillation to break azeotropes, the benefits, the mathematics behind it, and its real-world applications. “Our broad team of engineers take pride in seeking out and addressing the toughest separations problems for mass and heat transfer unit operations. The AIChE Southwest Process Technology Conference is the ideal stage for us to showcase our unique knowledge and approach to extractive distillation to the world’s fastest-growing science markets,” Erickson Koch Modular specializes in designing and constructing modular process systems with optimal system efficiencies to solve distillation problems. With 40 years of experience, the company’s engineers strive to solve the most difficult separation challenges within the product purification, organic chemical separations, solvent recovery, renewable energy production, stream stripping, wastewater treatment, solvent drying, and acid gas removal industries. As an exhibitor, Koch Modular is looking forward to networking opportunities and sharing its expertise on separation technology and applications within the chemical processing industry. About Koch Modular Koch Modular has successfully designed and constructed modular systems for the global Chemical Processing Industry for over 40 years. Specializing in mass transfer, Koch Modular supports innovative technology companies on their pathway from concept to commercialization, providing pilot testing and process conceptualization services, process design package development, detailed engineering, and modular constructed systems.

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CHEMICAL MANAGEMENT

Chevron to Acquire Full Ownership of Beyond6 CNG Fueling Network

Chevron | November 18, 2022

Chevron U.S.A. Inc., a subsidiary of Chevron Corporation announced it signed a definitive agreement to acquire full ownership of Beyond6, LLC and its network of 55 compressed natural gas stations across the United States from Chevron’s current B6 co-owners, a subsidiary of Mercuria Energy Trading and B6 CEO Andrew West. Chevron is complementing the strength of its traditional products business with new offerings that help customers support a lower carbon future, and renewable natural gas is an essential part of its portfolio of solutions. Through collaborations with Brightmark LLC and California Bioenergy LLC, Chevron is developing projects across the United States designed to convert fugitive methane emissions from dairies to a beneficial use as renewable natural gas, which can be considered carbon negative on a lifecycle basis under California’s Low Carbon Fuel Standard. With this acquisition, Chevron can market the RNG it either produces or procures through a nationwide network of CNG locations. "Chevron has seen strong demand for our RNG-to-CNG fuel offering from new and existing customers. Because of its carbon negative attribute and the ability of fleet operators to efficiently adapt vehicles to run on CNG, renewable natural gas can be a lower carbon solution for fleets seeking to reduce their lifecycle greenhouse gas emissions." Andy Walz, Chevron's president of Americas Products Mercuria and Chevron will enter into a long-term supply relationship to deliver renewable natural gas to Chevron as part of the transaction. "B6 represents a best-in-class operator in the build-out of a renewable natural gas network, and Mercuria has been excited to help the company grow from a stand-alone business to one that can help drive growth under Chevron," said Brian A. Falik, Mercuria's chief investment officer. "The partnership with Chevron has been a great success, and we look forward to helping them supply renewable fueling solutions to their customers." About Chevron Chevron is one of the world's leading integrated energy companies. We believe affordable, reliable and ever-cleaner energy is essential to achieving a more prosperous and sustainable world. Chevron produces crude oil and natural gas; manufactures transportation fuels, lubricants, petrochemicals and additives; and develops technologies that enhance our business and the industry. We are focused on lowering the carbon intensity in our operations and growing lower carbon businesses along with our traditional business lines. About Mercuria Founded in 2004, Mercuria is one of the largest independent energy and commodity groups in the world. As an integrated group, Mercuria is present all along the commodity value chain with activities forming a balanced combination of trading flows, strategic assets and structuring solutions. With more than USD 100 billion in turnover, Mercuria has become one of the most active players in the energy and renewables markets. Over the next five years, the company will direct half of its investment towards the energy transition.

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Spotlight

Substances that could not be further broken down were referred to as elements. Thus, Proust deduced the so-called law of definite proportions: In a given chemical compound, the proportion by mass of the elements that compose it are fixed, independent of the origin of the compound or its mode of preparation.

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