Westlake Chemical Completes Acquisition of Axiall Corporation

Texas: Westlake Chemical Corporation, an international manufacturer and supplier of petrochemicals, polymers and building products has completed the acquisition of Axiall Corporation. The Axiall corporation is a one of the leading manufacturers and marketer of integrated chlorovinyls primarily in North America region. The combined company would be the third-largest chlor-alkali producer and the second-largest polyvinyl chloride (PVC) producer in North America, with approximately combined pro forma revenues of USD7.4 billion and adjusted EBITDA of USD1.4 billion during one year, ending June 30, 2016. Westlake would continue with Deutsche Bank Securities Inc. and Goldman, Sachs & Co. as its financial advisors, and Cleary Gottlieb Steen & Hamilton LLP as its legal counsel.

TechSci Research depicts that this strategic acquisition would aid the new company to become one of the leaders in olefins and vinyls market of North America, wherein, it is expected to become the largest LDPE (Low-density polyethylene) manufacturer in the Americas, second largest PVC producer and third-largest chlor-alkali producer in North America. Moreover, the acquisition is expected to ensure continuous supply of LDPE and other polymers to the various end user industries, such as, construction, paints, adhesives, food material packaging and pharmaceutical packaging.

According to the recently published report by TechSci Research, “Global Masterbatch Market By Type (White, Black, Color and Additive), By End User (Packaging, Construction, Automotive, etc), By Region, Competition Forecast & Opportunities, 2011 – 2021”, global masterbatch market size is estimated to cross USD16 billion in 2016. Segment-wise, white masterbatch dominated the overall market in 2015, and this trend is anticipated to continue through 2021. White masterbatch demand is growing due to their ability to provide opacity as well as base color to plastics used extensively in milk pouches, milk bottles, plastic bags, food material packaging and pharmaceutical packaging. In 2015, Asia-Pacific region dominated the global masterbatch market on account of growing demand for innovative and attractively packaged food items, increasing investments in the region and easy availability of low-cost labor.