Westlake Chemical sets closing date for Axiall acquisition

albertchao

Albert Chao, CEO of Westlake Chemical Corp. Photo: Michael Hart

via Jack Witthaus, Houston Business Journal

Houston-based Westlake Chemical Corp. (NYSE: WLK) plans to close its acquisition of Atlanta-based Axiall Corp. (NYSE: AXLL) on Aug. 31, assuming Axiall shareholders approve the transaction, according to a release.

Westlake revealed in June it will acquire Axiall for $33 per share in an all-cash deal valued at $3.8 billion, including the assumption of $1.4 billion of Axiall’s debt.

When the deal is complete, the combined company will be North America’s third-largest chlor-alkali producer and second-largest PVC producer. Westlake expects annual cost synergies of about $100 million.

In January, Westlake first proposed acquiring Axiall for $2.9 billion, including the assumption of Axiall’s $1.5 billion in debt, but that offer was rejected. Westlake then proposed a $3.1 billion deal in April, but that offer also was rejected.

Before the deal, Westlake criticized Axiall for rejecting its offers and nominated replacements for Axiall’s board of directors, while Axiall pursued its own strategic plan.

After the deal was announced, Westlake agreed to withdraw its nomination of a slate of director nominees at Axiall’s annual shareholders meeting in June.

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