Belgium’s Solvay Obtain Cytec for $5.5 To make it world’s second largest...

Belgium’s Solvay Obtain Cytec for $5.5 To make it world’s second largest player in aerospace composite materials

Belgian chemicals company Solvay S.A. (SVYSY.PK,SVYSF.PK) claimed on Wednesday that the company is planning merger agreement to obtain the formula of U.S.-based specialty materials and chemicals company Cytec Industries Inc. $75.25 per share in cash. The over-all cash amount will be $5.5 billion, equivalent to an enterprise value of $6.4 billion.

Solvay shares are 4 percent lower in Belgium (current situation).

Solvay said the purchase of Cytec is going to be accretive to its settled incomes per share in the first year or after first year and the currency will be converted to investment within 6 months. Along with the current deal, Solvay estimated annual will be more than 100 million euros.

New Jersey grounded Cytec, with 4,600 workers panel, made sales of $2 billion and a 20 percent margin (2014). The source of company sale is half from North America, 1/3 from EMEA and rest from Latin America and Asia Pacific.

According to Solvay, the premium at per share is 28.9 percent as compared to the closing price of Cytec (July 28) and a first-rate premium of 26.9 percent as compared to average closing share for last consecutive three months.

Both companies’ Board of Directors’ have suddenly suggested the deal. The panel of Solvac and most prominent shareholder has mutually confirmed their association and support for the deal. Future plan is to work out for its rights as the portion of increase in capital to regulate its 30 percent stake in Solvay’s shareholding structure.

According to Solvay, this deal will lead the company to world’s second largest player in aerospace composite materials.