Innospec, a U.S. producer of fuel additives, withdrew its $744.7 million offer for TPC Group after the world’s largest maker of butadiene agreed to be acquired by private-equity firms First Reserve Corp. and SK Capital Partners.
Innospec and Blackstone Group LP had made a $47.50-a-share bid on Nov. 15. Littleton, Colorado-based Innospec said today it will pay a $2-a-share special dividend on Dec. 21.
“While we still feel that it is a good fit with Innospec, we are unable to conclude a deal structure in a manner where we are totally satisfied with the value creation for our shareholders,” Innospec Chief Executive Officer Patrick Williams said in a statement today.
TPC shareholders are scheduled to vote Dec. 5 on the $45-a- share offer from First Reserve and SK, which has regulatory approval. TPC fell 6.8 percent to $44.75 in New York. Innospec rose 1.4 percent to $32.28.
TPC, formerly known as Texas Petrochemical Inc., competes in the market for butadiene with LyondellBasell Industries NV, Royal Dutch Shell Plc and Exxon Mobil Corp.
It’s planning to boost its output by refurbishing a Houston plant to make the chemical from butane, a component of natural gas that has increased in supply with production from shale-rock formations.