Category Archive for "Industrials/Basic Materials"

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Axiall – Something Else Up Its Sleeve?

Axiall’s apparent reluctance to engage with Westlake in a formal discussion with respect to Westlake’s offer (resulting in a higher bid from Westlake this morning) suggests one of two possible positions: Axiall believes that it can win a proxy battle

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SHW/VAL – An Expensive Deal Not Without Its Hurdles

The announced acquisition of Valspar by Sherwin Williams, while consistent with our broad view on consolidation does not really tick any of the boxes we identified. This is not a segment facing massive offshore competition, nor is it oversupplied. Both

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Sasol Delays Ethylene Plant – Axiall, Westlake and Eastman Should be Paying Attention

  Last week Sasol announced a “delay” to some of its US Gulf investments and suggested that its ethylene unit would now start-up in 2019 rather than 2018. The company gave cash flow management as a reason, but this is

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Axiall – Asymmetric Risk Reward

  Axiall is either acting on very poor advice or has something up its sleeve. The company’s total and aggressive rejection of the bid from Westlake has opened a wide door for Westlake to walk through with a hostile bid,

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Monsanto – Left Out in the Cold?

As Monsanto takes visitors through its investor day this week, it does so in a very different environment than it has experienced previously. A story dominated for the last 15 years by innovation, high margins and industry leading growth, is

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Commodity Chemicals – It’s Not Just About Crude – It’s a Gas!

For the last 12 months – since the significant slide in crude oil – several US commodity chemical companies have effectively traded as a proxy to crude. For months, if crude has gone up then so has LYB, and to

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Dow Chemical – New Leadership Focus, Same Issues, But More Opportunity

It really is “All Change” in the chemical sector this year. While in this case Andrew Liveris is not retiring yet, we see this as a first move in a transition which allows Andrew to retire soon. He has been

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Agitation in Agriculture – Another CEO Change – Time to be Long

  Syngenta’s CEO replacement is now the second major leadership move in the Ag space if we include the DuPont CEO exit. In our Chemical Monthly, published last week we talked about the likelihood of more M&A and restructuring in

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Chemours – This Time Teflon Could Stick! – Implications for DuPont, Bye Bye Apollo

  This is likely a day of real schizophrenia for Chemours. On the one hand you have a rumored bid (Bloomberg) from Apollo. On the other hand you have the loss of the first Teflon related law suit – we

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DuPont: Is Some Sort of Breakup Now More Likely? We Would Own DD and DOW

With the exit of Chair and CEO, Ellen Kuhlman, and the interim replacement of Ed Breen, there will be lots of questions about; why so sudden, why Ed, why not Jim Gallogly and what comes next. One could take the

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