Lotte Chemicals Offeres USD2.6 Billion to Acquire Axiall

South Korea: Lotte Chemicals, one of the leading providers of petrochemical materials, has projected an unsought bid of above USD2.6 billion to acquire the control of Axiall Corp, an Atlanta-based chemicals company. Axiall Corp. has previously rejected two unsought bids from Westlake Chemical Corp., which is a Houston-based company. Westlake has already launched a proxy fight in order to replace the board of Axiall at Axiall’s annual shareholders meeting which is to be held on June 17. Since Lotte Chemicals has past connections with Axiall Corp., the company is expecting to get more friendly responses as compared to that of Westlake.

TechSci Research depicts that Asian Companies are offering more bids in order to acquire and expand overseas business. This would aid the company to reflect their rising confidence towards seeking growth in abroad. The acquisition of Axiall Corp would strengthen the position of Lotte Chemicals in the global petrochemicals business.

According to a recent report published by TechSci Research, “Global Butadiene Market Forecast and Opportunities, 2020”, global butadiene market is expected to cross 13 million metric tons in volume terms by 2020. The report reveals that majority chunk of butadiene is processed for manufacturing derivatives that are categorized as synthetic rubber. Wherein, PBR and SBR dominate the quantity of butadiene processed and they are followed by ABS Resins, SB latex and Adiponitrile. Further they are used primarily for manufacturing tire and automotive components followed by carpets, paper coats, etc.