July 7 (Bloomberg) -- Nuplex Industries Ltd., a New Zealand resin manufacturer, pared gains in Wellington trading after the company denied a report it was in talks with Orica Ltd. to sell its chemicals trading unit.
Nuplex isn’t involved in discussions with Sydney-based Orica on combining or merging chemical trading platforms, the Auckland-based company said in a statement today. Melbourne’s Herald Sun newspaper had reported there were talks, citing unidentified people in the industry. Nuplex shares rose 2.1 percent after earlier gaining as much as 5.3 percent.
The two companies, the largest wholesale distributors of chemicals in Australia with a combined 20 percent of the market, wanted to merge their units and then divest through a public share offer or trade sale, the Herald Sun reported. Nuplex, which makes resins used in paints and construction materials, may also be in talks with Covington, Kentucky based Ashland Inc. on its chemical unit, the newspaper said.
Nuplex shares rose 6 cents to NZ$2.91 at 1:35 p.m. in Wellington trading. Orica shares rose 0.6 percent to A$25.08 at 11:35 a.m. in Sydney.
To contact the reporter on this story: Tracy Withers in Wellington at firstname.lastname@example.org
To contact the editor responsible for this story: Ed Johnson at email@example.com