Mexichem Agrees to Buy Holland’s Wavin in Deal Valued at $704 Million
Mexichem Agrees to Buy Wavin in Deal Valued at $704 Million
Gerald van Daalen
Wavin CEO Henk ten Hove shakes the hand of Mexichem's Ricardo Gutierrez, president of the company's executive committee.
Wavin CEO Henk ten Hove shakes the hand of Mexichem's Ricardo Gutierrez, president of the company's executive committee. Photographer: Gerald van Daalen
Mexichem SAB (MEXCHEM*), the Latin American chemical producer that has bought more than 15 companies since 2007, agreed to acquire Wavin NV (WAVIN) in a deal valuing the company at 531 million euros ($704 million) to expand its plastic pipes business in Europe.
Mexichem intends to make a cash offer of 10.50 euros a share, the Tlalnepantla, Mexico-based company said today in a statement. That’s more than double Wavin’s closing price on Nov. 21, the day before Mexichem announced an initial offer.
Mexichem raised its offer three times before Zwolle, Netherlands-based Wavin agreed to be bought. Mexichem previously acquired AlphaGary, a thermoplastic-compounds operation, Policyd SA and plastic tube maker Plasticos Rex SA.
“Together we will be exceptionally positioned to capitalize on growth opportunities,” President Ricardo Gutierrez Munoz of Mexichem’s executive committee said in the statement.
Wavin rose 8.5 percent to close at 10.355 euros in Amsterdam. The shares have gained 162 percent since Nov. 21. Mexichem increased 0.3 percent to 46.77 pesos in Mexico City.
Delta Lloyd NV (DL), which owns about 8 percent of Wavin, would have immediately agreed to tender its stake if Mexichem’s offer was 11 euros a share, Jack Jonk, head of equities at the company’s asset management unit, said in a telephone interview. The company, based in Amsterdam, is still in talks with Mexichem about the proposed bid, Jonk said.
To contact the reporter on this story: Martijn van der Starre in Amsterdam at vanderstarre@bloomberg.net Carlos M. Rodriguez in Mexico City at carlosmr@bloomberg.net.
To contact the editor responsible for this story: Mariajose Vera in Muenchen at mvera1@bloomberg.net
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