Houston-based Westlake Chemical Corp. has closed on its $3.8 billion acquisition of Axiall Corp., concluding a four-year pursuit of the Atlanta petrochemical maker, FuelFix.com reports.
The combined company becomes North America’s second-largest producer of polyvinyl chloride, the plastic known as PVC.
“This transaction aligns two remarkable companies, creates a company with greater financial and operational flexibility and accelerates our growth strategy,” says Westlake chief executive Albert Chao in a statement. “We believe that we will be better able to serve our customers with a more diversified portfolio that should create significant value and growth opportunities for Westlake stockholders.”
Westlake chased Axiall for four years, attempting a hostile takeover until ultimately raising its price and negotiating a deal, agreeing to pay $2.3 billion in cash and assume about $1.5 billion of Axiall’s debt. The final offer—$33 per share—boosted Westlake’s earlier bid by about 40%.
