) said that it expects the European Commission to conduct an
in-depth investigation (phase II) on its earlier announced buyout
) Performance Additives and Titanium Dioxide (TiO2) Pigments
The European Commission is expected to have up to 125 working
days to make a final verdict on whether the pending acquisition
would materially impede effective competition in the European
economic area. Huntsman is currently working with the
representatives of the European Commission as the latter
continues its analysis over the deal.
Huntsman, in Sep 2013, landed a deal with Rockwood to buy the
latter's Performance Additives and TiO2 businesses. Huntsman
agreed to pay $1.1 billion in cash and assume $225 million in
pension obligations. The deal received antitrust clearance in the
U.S. in Dec 2013.
TiO2 Pigments was Rockwood's biggest business unit in 2012
with revenues of roughly $889 million, representing around 25% of
its total sales. The divestiture is in sync with Rockwood's goal
to become a more focused specialty chemical company.
Huntsman is a major producer of TiO2, polyurethane and other
specialty materials. The acquisition will make the company the
world's second-largest TiO2 producer.
The acquisition will not only enable Huntsman to better serve
its customers through a broader range of products, but will also
offer an attractive opportunity to unlock value within its
pigments business. The acquisition is expected to be accretive to
the company's earnings per share for 2014 and offer meaningful
cost saving opportunities.
Huntsman with annual sales of more than $11 billion makes
differentiated chemicals. The company makes products for an array
of industries including chemicals, plastics, automotive,
aviation, textiles, paints and coatings, construction,
technology, agriculture, health care, appliances and
Huntsman is a Zacks Rank #3 (Hold) stock.
Other companies in the chemical space with favorable Zacks
Northern Technologies International Corp.
The Dow Chemical Co.
). While Northern Technologies holds a Zacks Rank #1 (Strong
Buy), both Dow Chemical and Methanex retain a Zacks Rank #2
DOW CHEMICAL (DOW): Free Stock Analysis
HUNTSMAN CORP (HUN): Free Stock Analysis
METHANEX CORP (MEOH): Free Stock Analysis
NORTHERN TECH (NTIC): Free Stock Analysis
ROCKWOOD HLDGS (ROC): Free Stock Analysis
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