Basell, the Dutch chemicals group, is buying US-based Huntsman for $9.6 billion including debt, in a bid to strengthen its position as a global chemicals group.
Under the terms of the agreement, Basell will acquire all of Huntsman’s outstanding common stock for $25.25 per share in cash. The price represents a 34 percent premium over the company’s Monday closing stock price of $18.90. The proposed deal is double the size of Basell.
Company has total 221.9 million outstanding shares; the deal is worth about $5.6 billion.
Huntsman was built through a series of acquisitions, but a heavy debt forced company founder Jon Huntsman to sell its 49 percent shares of the family-owned company to MatlinPatterson, the US private equity firm. Basell will retain Huntsman brand and its CEO Peter Huntsman will remain on the acme position.
Basell, which is owned by privately held U.S. industrial group Access Industries, is a leading producer of polypropylene, which is used in products like textiles, reusable containers and laboratory equipment. The deal would broaden Basell’s holdings and give it access to Huntsman’s technology, which is used in paints, footwear and cleaning products.
Huntsman discloses that other private equity groups also approach company to buy before the board accepting Basell’s offer. The combined group would match Basell’s polyolefin with Huntsman’s expertise in polyurethanes and pigments, with annual sales of $26billion and 20,900 employees.
The deal, which is subject to get approval from Huntsman shareholders and European regulators, was unanimously approved by the boards of both Basell and Huntsman. Company’s majority stake holders MatlinPatterson and the Huntsman family have already approve the acquisition.
As the news of acquisition hits the market Huntsman Corp. shares invigorates and increases to $28.1 percent from $24.21.
Via: Financial Times
