Westlake Chemical today said Axiall Corp.’s board of directors rejected its bid to buy the Atlanta-based chemical producer for $1.4 billion in cash and stock. Westlake said it offered to buy Axiall for $11 per share in cash and 0.1967 of a Westlake share — a value of $9 based on Westlake’s Jan. 22 closing price. Westlake would also assume $1.5 billion in debt outstanding as of Sept. 30.
Westlake CEO Albert Chao said in a statement the firm was “surprised and disappointed” by Axiall’s decision, which he said would have created a more diversified company with a stronger financial profile than Axiall. He said Westlake would bring the proposal to the attention of Axiall’s shareholders.
Axiall reported a net loss of $769.4 million in the third quarter of 2015, due in part to lower chemical prices. It divested its aromatics business in September and is considering selling its building products division.
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