Albemarle: M&A Confusion Drives ~60% Upside
Fri, Sep. 9, 10:03 AM
- China’s Tianqi Lithium, the country’s largest lithium producer, says it plans to bid for a 23% stake in Chilean rival Sociedad Quimica y Minera (SQM -2.8%).
- Tianqi says it signed a non-binding offer with Oro Blanco to bid for its stake in Pampa Calichera, which in turn holds 23% of SQM.
- Chile's government has said it would not block a foreign takeover of SQM, and Tianqi's interest in gaining lithium supply may arouse worries that China could corner the market, but the U.S. Geological Survey estimates 14M tons of reserves of lithium globally, more than 400 years of supply based on last year’s production.
- Tianqi and SQM, together with U.S.-based Albermale (ALB -1.5%) and FMC Corp. (FMC -1.9%), dominate the global lithium market.
Fri, Jun. 17, 7:15 AM
- Albemarle (NYSE:ALB) agrees to sell its Chemetall surface treatment business to BASF (OTCQX:BASFY) for $3.2B.
- ALB acquired Chemetall, a supplier of specialty chemicals used in surface treatment of metals and plastics, as part of its purchase of Rockwood Holdings in 2014.
- ALB says the sale will help it invest “in the future growth of our high-priority businesses,” reduce leverage and return capital to shareholders.
- Chemetall reported $52.5M in EBITDA during Q1, up 14% Y/Y.
Dec. 16, 2015, 8:28 PM
- Albemarle (ALB +6.5%) says it's selling its Mineral Flame Retardants and Specialty Chemicals businesses, to flame-retardants specialist J.M. Huber and its Huber Engineered Materials unit.
- The move is part of Albemarle's plan to sell non-core businesses and assets and includes its 50% interest in the Magnifin Magnesiaprodukte JV with RHI, as well as its Martinswerk unit and plant.
- Terms weren't disclosed; the deal is expected to close early next year.
- "We continue to execute our plan to sell non-strategic businesses and assets which will allow Albemarle to enhance our focus on growth opportunities within our core businesses," said Albemarle president/CEO Luke Kissam.
Jul. 15, 2014, 2:49 PM
- It isn't just Rockwood's (ROC +11.9%) lithium technology that's driving Albemarle's (ALB -0.6%) $6.2B takeover offer - it's good ol' cheap money, Heard on the Street's Liam Denning writes.
- At the end of Q1, ALB’s net debt stood at less than 1x EBITDA, unfashionable with investors when ultra-low interest rates ensure returns on cash are a pittance; with the deal, ALB expects net debt to jump to 3.5x EBITDA with higher cash flows reducing that number quickly, just like a leveraged buyout.
- Credit Suisse likes the deal and raises its price target for Outperform-rated ALB to $90, but Oppenheimer downgrades shares to Underperform, saying the acquisition looks like a "defensive transaction."
Jul. 15, 2014, 7:02 AM
- Albermarle (NYSE:ALB) has agreed to purchase rival Rockwood Holdings (NYSE:ROC) in a cash-and-stock deal for approximately $6.2B.
- The agreement values Rockwood at $85.53 per share - a 13% premium to its yesterday's closing price. Albemarle will pay $50.65 in cash and 0.4803 shares for each share of Rockwood stock.
- Rockwood announced net sales of $355M for Q1; Albemarle posted $656M.