NOVA Chemicals, IPIC merger completion delayed by Canadian review

By Lisa Kerner

Charlotte, N.C., June 30 - NOVA Chemicals Corp. said it expects to close its merger transaction with International Petroleum Investment Co. shortly after it receives approval under the Investment Canada Act.

According to NOVA, IPIC agreed with the Investment Review Division of Industry Canada to an extension of its review until Monday.

In addition, NOVA and its lenders agreed to amended financial covenants for the remainder of 2009, according to a NOVA news release.

As reported earlier in June, the Chinese Ministry of Commerce and the U.S. Committee on Foreign Investment granted their approvals for the proposed merger.

On Feb. 23, IPIC announced it agreed to acquire NOVA for $6 per share in a court-approved plan of arrangement under the Canada Business Corporations Act.

The total value of the arrangement, including the assumption of NOVA's net debt, is approximately $2.3 billion.

IPIC, wholly owned by the Government of the Emirate of Abu Dhabi, invests in the hydrocarbon sector outside Abu Dhabi.

Pittsburgh-based NOVA Chemicals is a producer of plastics and chemicals.

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