Monsanto, Exxon to Merge Units

Monsanto Chemical Co. and Exxon Chemical Co. said they have reached an agreement in principle for merging their respective thermoplastic elastomers businesses to create a new, independent company to develop, manufacture and market TPEs.

The new company would combine Monsanto’s technical, manufacturing and marketing expertise in elastomeric alloys with Exxon Chemical’s expertise in olefin-based raw materials and fundamental polymer science.

Details of the agreement remain to be determined. The target start-up date for the new company is the end of 1990, pending the successful conclusion of negotiations and approvals of the appropriate government agencies in the United States, Latin America and Europe.

TPEs are a diverse family of high-performance rubber-like materials. Unlike conventional vulcanized rubber products, TPES can be easily processed and recycled. They are used in the automotive, medical, food, electrical and construction industries.