Kukdo raises $70M to buy LG Chem's BPA unit for $59.3M
What's the deal? Kukdo International, a subsidiary of South Korea's Kukdo Chemical, will raise US$83.8M through a capital increase to fund its acquisition of LG ChemDealroom has a profile for this one. Try Dealroom →'s bisphenol A (BPA) business in Daesan. The purchase is valued at US$65.8M (roughly $59.3 million), with closing expected in the first half of 2027.
How it's structured: Kukdo Chemical disclosed the third-party allotment in a regulatory filing on October 27, with shares allotted to both Kukdo Chemical and LG Chem. Of the total raise, US$65.8M covers the acquisition, US$6.34M goes to working capital, and US$11.7M funds IT systems and other costs. Payment comes in two installments: US$8.38M this November and US$75.5M next year.
What each side gets: BPA is a commodity petrochemical and a key feedstock for polycarbonate and epoxy resin. Kukdo Chemical, the world's leading epoxy resin maker, is already LG Chem's largest BPA customer — buying the Daesan plant brings a critical raw material in-house and reduces reliance on outside suppliers.
Why now? LG Chem is trimming commodity chemicals as China's rising self-sufficiency and global oversupply weigh on profitability. The sale lets it shift toward higher-value operations and free up resources for growth areas. The Daesan plant has annual capacity of about 165,000 tonnes; LG Chem's Yeosu BPA operation is not included.
The signal: The deal fits a broader retreat by South Korean petrochemical makers, with restructuring plans at Yeosu and Daesan already approved, including capacity cuts. But this is a targeted portfolio reshuffle and vertical-integration move — not, on its own, a resolution of the sector's overcapacity problem.
Read more: en.sedaily.com
Image credit: roy.luck
