Chevron Phillips Chemical Company, a joint venture between Chevron Corp. (NYSE: CVX) and Phillips 66 (NYSE: PSX) is reportedly looking to acquire Canadian plastics maker Nova Chemicals Corp. for over $15 billion, including debt. The news was reported by Reuters and has not yet been officially confirmed.
Nova Chemicals was acquired 10 years ago by Abu Dhabi’s International Petroleum Investment Co., which later merged with Mubadala Investment Co. Mubadala has reportedly been looking to sell Nova for the past couple of months but there is no guarantee it will accept Chevron Phillips’ offer.
The acquisition would be beneficial to Chevron Phillips in expanding its scale and footprint. However none of the companies involved have offered any comment on the matter.
For the first quarter of 2019, Nova reported revenues of $943 million, down 16% year-over-year. The company generated net profits of $59 million versus a net loss of $555 million in the year-ago quarter.
Chevron’s stock has gained 15% thus far this year while the shares of Phillips 66 have climbed 6% year-to-date. Chevron’s stock was up over 1% in morning hours on Friday while Phillips’ shares were down 0.90%.