Westlake Chemical Agrees to Acquire Axiall for USD3.8 billion

 United States: Westlake Chemical, a United States based manufacturer & distributor of petrochemicals, polymers and fabricated building products has agreed to buy United States based Axiall Corporation which is a manufacturer & distributor of integrated chlorovinyls and vinyl-based building and home improvement products. The takeover deal is valued around USD3.8 billion for USD33 per share. The deal would be closed by end of 2016. Post -acquisition the involved companies would become one of the largest chlorine alkali and PVC producer in North America. Post-acquisition Westlake would be able to cater the demand of its customers in more efficient manner. Additionally, acquisition would provide financial and operational flexibilities to both the companies.

TechSci Research depicts that this acquisition would strengthen the market position of Westlake globally. The closure of deal would enable Westlake in increasing its penetration global petrochemical industry. The amalgamation of the both the companies, would result in offering a wide range of products to its customers

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.