US: Westlake agrees to buy vinyl maker axiall for $2.4 billion

Westlake Chemical agreed to acquire Axiall Corp. for about $2.4 billion, burying the hatchet after a five-month takeover contest, to become the second largest North American producer of vinyl products used in pipe, siding and decks.

Westlake agreed to pay $33 a share in cash, the companies said in a statement Friday. The deal is valued at $3.8 billion including the assumption of debt. The companies expect the transaction, which is subject to approval by Axiall shareholders and antitrust regulators, to close by the fourth quarter.

The acquisition comes amid a record amount of deal making in the chemical industry, led by the merger of DuPont Co. and Dow Chemical Co. in December and Syngenta AG’s February agreement to be acquired by China National Chemical Corp. Axiall expands Westlake’s integration into raw materials such as ethylene and chlorine as well as into finished products made with PVC, a hard plastic used in construction products.

The agreement ends a battle that began in January with Westlake’s $20-a-share unsolicited bid. Axiall rejected that offer, as well as a sweetened offer in March of $1.6 billion, or $23.35 a share in cash and stock.

Full Content: Bloomberg

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