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Lotte Chemical offers to buy Axiall Corp

Staff writer |
Lotte Chemical of South Korea has made an initial offer to buy U.S. chemicals maker Axiall Corp, coming in as a potential white knight for the $1.6 billion company.

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Lotte Chemical, which is building a U.S. ethylene cracker in a joint venture with Axiall, announced the offer in a regulatory filing but did not provide any terms.

Lotte Chemical, part of hotel-to-retail conglomerate Lotte Group, said in the filing that its proposed takeover would help the company diversify its product portfolio and secure a stable customer base in North America for the U.S. cracker joint venture.

The potential deal will help Lotte Chemical become a "global integrated chemicals company", it said.

Lotte Chemical said Axiall generated at least 2 trillion won ($1.72 billion) in cash per year, and that it was considering various methods to finance the acquisition including cash.

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