Axiall Corporation, a U.S. chemical and building products maker, has rejected a US$1.4 billion dollar purchase offer by competitor Westlake Chemical Corporation.
Westlake, a Houston, Tex.-based manufacturer and supplier of petrochemicals, polymers and building products, had argued that the combined company would be more diversified and have a stronger financial profile than Axiall on its own.
“We believe that Westlake’s proposal is an opportunistic attempt to take advantage of challenging public equity market conditions and significantly undervalues Axiall’s assets and its long-term prospects,” Axiall CEO Timothy Mann said in a statement.
Axiall said in its statement that it was taking other steps to increase shareholder value, including acknowledging the sale of its building products business, which is valued at as much as US$800 million.
“In this challenging environment, we believe Axiall’s unwillingness to even discuss our compelling proposal exposes its shareholders to significant risk and uncertainty,” Westlake CEO Albert Chao said in a statement.
Axiall is the parent company of building products maker Royal Group Inc., of Woodbridge, Ont.
