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.