Stephen Simpson, CFA
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.
Thu, May 19, 11:48 AM
- A Monsanto (MON +4.9%) takeover by Bayer is considered "relatively unlikely" by Jefferies analyst Laurence Alexander, as he expects MON to object to the offer given its conviction in its R&D pipeline and longer-term competitive advantages.
- Alexander thinks shares of Syngenta (SYT -0.5%) and DuPont (DD -0.7%) could be pressured as regulatory scrutiny likely would intensify if MON gets acquired, and BASF (OTCQX:BASFY -1.4%) could fall on investor concerns of a potential counter-bid.
- But the analyst sees a potential MON takeover as positive for shares of Novozymes (OTCPK:NVZMY -0.1%) and FMC Corp. (FMC -0.7%), as "a further roll-up of 'specialty generic' agrichemical assets could entice capital, and FMC would be a plausible anchor for such an attempt."
- Jefferies rates MON as a Hold with a $95 price target.
- Now read Bayer investor "deeply concerned" about move for Monsanto
Feb. 4, 2015, 7:38 AM
- Tronox (NYSE:TROX) agrees to acquire FMC Corp.'s (NYSE:FMC) Alkali Chemicals division for $1.64B, in a deal it says will hep it expand in faster-growing developing economies.
- The Alkali Chemicals division produces natural soda ash and related products used in the glass, chemical processing and detergent industries.
- TROX expects the acquisition to add more than $0.50/share to earnings in the 12 months following closing; the business would have contributed ~$800M of revenue for FY 2014.
Feb. 3, 2015, 9:41 AM
- Tronox (TROX +10.2%) is nearing a deal to buy the soda-ash business from rival chemical company FMC Corp. (FMC +1.8%) for more than $1.5B, with an announcement coming as soon as today, WSJ reports.
- FMC announced its intention to sell the alkali chemicals business in September when it agreed to acquire a pesticide business from Auriga Industries.
- TROX appears to have prevailed in the auction for the FMC unit over other chemical companies and P-E firms, according to the report.
Sep. 8, 2014, 6:59 AM
- FMC (NYSE:FMC) will buy Auriga Industries' Cheminova unit, which develops and supplies protection products to increase the yield and quality of crops.
- Cheminova is the only business of holding company Auriga, which is expected to de-list following the 10.5B Danish crown ($1.8B) takeover by FMC.
- The deal is subject to approval by Auriga's shareholders at an extraordinary general meeting in October, and is expected to close in early 2015.
Dec. 13, 2013, 11:20 AM
- Chemicals company FMC Corp. (FMC +0.1%) agrees to sell its Peroxygens business to affiliates of One Equity Partners, the private investment arm of JPMorgan Chase in a deal valued at ~$200M.
- Peroxygens is a supplier of hydrogen peroxide, persulfate products, peracetic acid and other specialty oxidants.
- FMC says it wants to focus on its core business segments in crop protection, health and nutrition technologies, and alkali chemicals and lithium.
Jul. 24, 2013, 7:54 AM
FMC Corp. (FMC) acquires omega-3 producer Epax Nutra Holding III for $345M, helping the chemical company to expand into the high-growth nutraceutical market. As a part of the deal, FMC enters into a long-term supply agreement with Trygg Pharma to provide Trygg with omega-3 fish oil for use as an active pharmaceutical ingredient. FMC expects the deal to immediately boost EPS.| Jul. 24, 2013, 7:54 AM