Japan's ENEOS Holdings agreed to buy the U.S. petrochemical operations of TPC Group for about $1.3 billion, a deal that will make the Japanese energy giant the world's third-largest producer of butadiene, a key feedstock for synthetic rubber and chemical manufacturing.
The acquisition covers TPC's Houston petrochemical manufacturing complex along with terminal operations in Port Neches, Texas, and Lake Charles, Louisiana. TPC is North America's largest independent processor of C4 hydrocarbons — including butadiene, raffinate and 1-butene — and ENEOS said the deal secures stable North American supply as Asian production capacity tightens, while giving it access to cost-advantaged, shale-based U.S. feedstocks amid growing domestic demand.
TPC filed for Chapter 11 bankruptcy in 2022 after years of declining performance and the fallout from a catastrophic 2019 explosion at its Port Neches plant, which forced the evacuation of roughly 50,000 residents, injured five employees and caused more than $600 million in damage. The bankruptcy eliminated more than $950 million of the company's $1.3 billion in secured debt, and ownership passed to a group of creditors led by Redwood Capital Management, which holds the largest stake, followed by Monarch Alternative Capital and PGIM.
"This transaction is a strong endorsement of TPC Group's people, assets and capabilities, as well as the important role we play in the petrochemical value chain," said TPC Group Chief Executive Ed Dineen. Redwood Capital Management's Ruben Kliksberg and Sean Sauler said in a joint statement that they are "confident that ENEOS can build on this momentum and further develop TPC as a trusted pillar of the North American chemical industry." The deal is expected to close in October, subject to regulatory approval, with the companies operating separately in the meantime.
The transaction marks one of the larger cross-border petrochemical deals of the year and reflects a broader pattern of Asian energy companies moving to lock in U.S. feedstock supply as domestic shale production continues to underpin globally competitive chemical manufacturing costs. For TPC, the sale caps a turnaround from its 2022 bankruptcy filing to a change of ownership less than four years later — a faster recovery than many of its post-restructuring peers in the U.S. petrochemical sector.