WESTLAKE: Takeover of Axiall completed / Creation of North American olefins and vinyls leader
Westlake chemiical Logo (Image source : Westlake chemical website )
Westlake Chemical (Houston, Texas / USA; www.westlake.com) has finally completed its takeover of vinyls producer Axiall (Atlanta, Georgia / USA; www.axiall.com), following clearance earlier this month by competition authorities – see Plasteurope.com of 22.08.2016. The transaction has been a difficult and lengthy affair with Axiall rejecting several offers before accepting a bid of around USD 3.8 bn in June.
With expected pro forma revenues of USD 7.4 bn and adjusted EBITDA of USD 1.4 bn for the year ended 30 June 2016, the combined company is a North American olefins and vinyls leader. It is now the largest LDPE producer in the Americas, the second-largest PVC producer in North America and the third-largest globally; and the third-largest chlor-alkali producer both in North America and globally.
Annual cost synergies of roughly USD 100m are expected and the transaction is expected to be accretive in the first year after closure.
News Source : K – Online
