First Reserve eyes $628m TPC Group purchase

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Global buyout giant First Reserve is understood to have entered exclusive talks to buy listed chemical maker TPC Group.

The purchase price could reach $628m plus debt if the $40-a-share bid reported by Reuters is accepted.

That figure is just above the $38.76 TPC shares closed on at the end of trading yesterday, but well short of the $47.03 it reached on March 16.

Reuters cited a person with knowledge of the matter as saying the take-private deal could still fall though.

The Texas-based company provides highly-specialised chemicals used in markets such as synthetic rubber, fuel additives, plastics and surfactants.

Last month it emerged First Reserve and Farallon Capital were interested in an A$5.3bn ($5.46bn) takeover of portfolio company Whitehaven Coal, one of Australia’s biggest independent miners.

Coal magnate Nathan Tinkler had previously tabled an offer of A$5.20 per share for the business, representing a 50 per cent premium to the previous day’s closing price.

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