Canexus Takes Chemtrade Logistics
Canadian sodium chlorate and chloralkali company Canexus has approved its takeover by Chemtrade Logistics. Under a deal agreed last December, Chemtrade will pay 1.65 Canadian dollars per share, valuing Canexus at around 900 million Canadian dollars, or $692 million, including debt. At a Feb. 8 meeting, 84.51% of Chemtrade’s common shareholders voted to approve the deal.
The agreement comes two months after Chemtrade launched a hostile takeover for the chemical manufacturer, offering 1.50 Canadian dollars per share on Oct. 4. However, Canexus board members unanimously rejected the bid on Oct. 19.
Toronto-based chemical company Superior Plus Corp. tried to buy Canexus last year but the US Federal Trade Commission (FTC) blocked the proposal in June 2016 over concerns that the combined company would control too much of the sodium chlorate market. It said if the merger took place, the new company and rival AkzoNobel would have controlled around 80% of total North American sodium chlorate capacity.
A Canexus/Chemtrade merger would only have a relatively small share of this market, so is unlikely to trigger any antitrust concerns. The transaction is expected to close by the end of April, subject to receiving regulatory approvals.
Based in Calgary, Alberta, Canexus has four plants in Canada (British Columbia, Manitoba and Quebec) and two in Brazil (Esperito Santo). Chemtrade operates 62 plants in North America for products including sulfuric acid, sodium hydrosulfite/zinc oxide, inorganic coagulants for water treatment, specialty chemicals (including sodium chlorate), among others
