South Korea’s Lotte Chemical makes bid for US Axiall
According to media reports, South Korea’s Lotte Chemical made a more than $3.1 billion counter bid for the acquisition of Axiall, although the company reportedly declined to reveal the exact terms of its offer. If the parties agree on the deal, it will be Lotte Chemical’s largest overseas acquisition.
In April, Westlake offered a $3.1 billion bid for the takeover of Axiall, which was rejected. Analysts commented that Lotte Chemical’s offer may cause Westlake to raise its initial offer.
Through the acquisition, Lotte Chemical can diversify its product portfolio and strengthen its position in the US.
In late 2015, Axiall Corporation and South Korea’s Lotte Chemical reached a final investment decision to build a new joint venture ethane cracker in Louisiana, USA. The new ethane-based cracker is slated to have a production capacity of 1 million tons/year and is expected to be started up by early 2019.