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(Bloomberg) -- Arkema SA (AKE),
already cheaper than any of its rival industrial chemical producers, may now be
a takeover target for Saudi Basic Industries Corp. and DuPont Co. after deciding
to spin off its unprofitable vinyls business.
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Since losing a third of its market capitalization in the past seven months,
Arkema’s combined equity and net debt is now valued at 3.5 times this year’s
earnings before interest, taxes, depreciation and amortization, based on
analysts’ estimates compiled by Bloomberg. The multiple is the lowest among
rival chemical producers, including Lanxess AG (LXS), Solvay SA (SOLB), Clariant
AG (CLN) and Dow Chemical Co. (DOW), according to data compiled by
Bloomberg. |
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With the sale of a unit that’s been hampered by slumping construction
spending, Arkema may now attract takeover interest from Sabic, the world’s
biggest petrochemicals maker, and DuPont (DD), the largest U.S. chemicals
producer by market value, according to Berenberg Bank. The company, which makes
chemicals used in everything from athletic shoes to air conditioning, may also
lure private equity bidders, said Nomura Holdings Inc. Colombes, France-based
Arkema could fetch as much as 70 euros a share in an acquisition, according to
Berenberg, a 47 percent premium to yesterday’s closing price.
mrcplast.com
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