Carolyn Buller of Squire Patton Boggs takes a look back at a year like no other in chemicals

Squire Patton Boggs (SPB), a global law firm, has about one third of the top 60 chemical companies as clients and is constantly speaking with the industry about ongoing trends. The COVID-19 pandemic has made forecasting an even more treacherous business than ever and it is always hard to generalise over so broad a concept as speciality chemicals. ‘Specialities’ are a never-ending game – everything is or was a speciality until, one day, it no longer is.

In a letter to government ministers that has been seen by the Financial Times, 25 industry leaders have called for “a more proportionate, effective and efficient” post-Brexit chemical regulatory regime in the UK. The writers are understood to be from multiple trade associations, including the Chemical Industries Association (CIA), though this has not been confirmed.

Following a long period of speculation, Lonza has entered into a definitive agreement to sell its Lonza Specialty Ingredients (LSI) business to private equity firms Bain Capital and Cinven for CHF 4.2 billion in order to focus entirely on healthcare. The deal is expected to close in 2H, subject to customary closing conditions.

Lanxess has signed a binding agreement to acquire Emerald Kalama Chemical from private equity firm American Securities for €867 million. The deal, which will be financed from existing liquidity, should be completed in Q2, subject to approval by the relevant authorities.

Sumitomo Chemical is to install new lines to expand production capacity for photoresists for advanced semiconductor photolithography processes, including argon fluoride (ArF) immersion and extreme ultraviolet (EUV) lithography, at its Osaka Works. These are due to commence operation in 1H fiscal 2022.

Chemours has divided its former Fluoroproducts segment into two new reportable segments under newly appointed presidents. The aim was to facilitate “an enhanced customer-centred approach, management focus and decision-making, strengthened resource allocation, and increased transparency and accountability”, the company said.

UK-based CDMO Arcinova has been acquired by Quotient Sciences, a ‘drug development and manufacturing accelerator’ that is itself owned by private equity firm Permira. BGF, which had part-owned Arcinova since 2018, will withdraw from its minority stake. Terms were not disclosed.