US butadiene producer TPC Group could be going private as part of a buyout, market sources said Thursday on the heels of a report that indicated the deal could be worth more than $600 million.
Renewed talk of a possible TPC Group buyout in the butadiene market resulted from a Bloomberg report Wednesday that quoted people familiar with the discussions as saying the company is in talks to go private as part of a leveraged buyout.
A deal could come in a few weeks, Bloomberg reported.
"I know there has been some discussion," about a possible buyout, an olefins trader said.
TPC Group, which is based in Houston and labels itself as the largest producer of finished butadiene and butene-1 in North America, declined to address the report.
"We are not offering comment on market speculation and rumors," TPC spokeswoman Sara Cronin told Platts via e-mail.
TPC Group has facilities in Houston, Port Neches and Baytown, Texas, and Lake Charles, Louisiana.
The news appeared to have little to no effect on spot butadiene prices, sources said. US spot butadiene was last assessed Friday at 92 cents/lb ($2,028/mt) CIF US Gulf Coast, and was heard in the low to mid 90s cents/lb CIF USG Thursday as inquiries for August and September product have increased this week.
