DLA Piper advises TAIF on merger of its petrochemical business with Sibur

DLA Piper has advised TAIF, a Russian oil and gas company, on the merger of its petrochemical business with Sibur, the largest integrated petrochemical company in Russia. The enlarged company will become one of the world’s top five producer of polyolefin and rubber products.

Existing TAIF shareholders will receive a 15% stake in Sibur Holding in exchange for the transfer of a controlling interest in TAIF’s group of petrochemical and energy companies with the remaining stake in TAIF subsequently available for purchase by Sibur.

The merger will make the entity’s petrochemical operations more competitive in the global market, improve its resilience to market fluctuations and unlock additional growth potential for Russia’s petrochemical industry through the joint realisation of capital intensive projects, boosting chemical non-commodity exports. It will also create new jobs and opportunities for sustainable development and environmental management.

DLA Piper provided full legal support for the transaction, including the preparation of the framework agreement and other transaction documents. The team was led by Moscow-based Corporate partner Evgeny Glukhov, assisted by senior associate Evgenia Kudryashova and Finance, Projects and Restructuring associates Ksenia Mikhaylova and Anna Litovchenko.