ENEOS to take full ownership of asphalt maker NIPPO, reversing 2021 Goldman deal
What's the deal? ENEOSDealroom has a profile for this one. Try Dealroom → Holdings has agreed to acquire full ownership of NIPPO CorporationDealroom has a profile for this one. Try Dealroom →, buying out special purpose companies indirectly held by Goldman SachsDealroom has a profile for this one. Try Dealroom →. The deal makes NIPPO, which manufactures asphalt mixtures and paves roads in Japan and overseas, a wholly owned subsidiary of the Japanese energy group. Terms were not disclosed.
What's the endgame? ENEOS produces asphalt as a co-product of crude oil refining; NIPPO turns it into mixtures and lays roads. Full ownership lets ENEOS coordinate the chain from production to paving under one roof.
Why now? The move reverses a 2021 arrangement in which ENEOS and Goldman Sachs took NIPPO private, aiming to lift its value and eventually relist it. ENEOS now says slower-than-expected progress on decarbonization has shifted its focus toward strengthening profitable base businesses. Synergies with NIPPO that were unclear in 2021 have become "increasingly clear," it said.
What's next? ENEOS plans to use integration for joint research and development, and to pursue overseas growth in Southeast Asia, where it sees rising demand for road infrastructure. It also points to NIPPO's expertise in soil remediation and construction as a way to make use of idle land.
The signal: The deal is strategic rather than a broad sector consolidation. For ENEOS, tying asphalt supply to road paving secures stable refinery output as the energy transition slows, turning a once-arms-length partnership into a vertically integrated business.
Read more: chemicaltoday.in
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