Canadian Firm Sells Unit to Bayer AG
<i> Associated Press</i>
NEW YORK —
Nova Corp., a Canadian energy and chemical firm, said it is selling its Polysar rubber division to the West German firm Bayer AG for $1.06 billion.
Nova will use the proceeds from the sale to reduce its debt, the company said in a statement from its Calgary, Alberta, headquarters. The rubber business is part of Polysar Ltd., a firm acquired by Nova in 1988.
Bayer said the acquisition would supplement its rubber business, giving it plants that produce synthetic rubber primarily for tire and industrial uses.
The transaction, which must be approved by government officials in the United States, Canada and Europe, also provides for Bayer to assume Polysar’s outstanding debt.
