The likely closing date of the proposed sale of Nova Chemicals Corp. has been bumped to sometime after July 6.
Nova, whose operations include ethylene and polyethylene plants at Joffre, announced in February that International Petroleum Investment Co. (IPIC) had offered to buy the petrochemical company for US$6 a share — or about US$2.3 billion, including assumption of debt. The deal was expected to close in the second quarter of this year, but was subject to shareholder and government approvals.
Nova’s shareholders gave their blessing in April, but Industry Canada’s investment review division has yet to authorize the transaction.
Nova said on Tuesday that IPIC has agreed with Industry Canada to extend the review period to July 6. It added that the sale is expected to close shortly after regulatory approval is given.
IPIC is owned by the government of the Emirate of Abu Dhabi. But if its purchase of Nova is completed, Nova is expected to remain an independent company with its existing senior management remaining in place.