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Westlake Chemical acquires Axiall for $3.8 billion
HOUSTON, June 10, 2016 (PCW) –- Westlake Chemical announced on Friday it had agreed with Axiall to buy the latter firm for $3.8 billion, $0.7 billion above its initial asking price.
This comes a few days after Lotte Chemical said it would make a bid of its own to buy Axiall.
Westlake’s offer has been approved by both firms’ board of directors. The deal is expected to close in the fourth quarter.
The combined firm will be the third-largest chlor-alkali and second-largest PVC producer in North America, with expected combined revenues of $7.6 billion and EBITDA of $1.5 billion for the last 12 months ended Q1 2016, Westlake said.
Westlake also expects annualized cost synergies of approximately $100 million based on its estimates.
As part of this merger agreement, Westlake has withdrawn its nomination for a new slate of director nominees at Axiall’s upcoming annual meeting on June 17.
Westlake had previously said during its hostile takeover bid of Axiall it would put forward an entirely new board, should the current directors not review its bid. -– Samantha Hartke