Albright & Wilson falls to French `bid vehicle'
15 Jan 2000
Rhodia has won the bidding war to control British inorganic chemicals specialist Albright & Wilson, after US company Albemarle declined to up its 160p/share bid above the French company's 167.5p offer.
The £526million deal gives the Rhodia-backed `bidding vehicle' ISPG a 55 per cent stake in A&W; however, the acquisition will not be completed until Rhodia's parent, Rhone-Poulenc, finishes its merger with Hoechst. ISPG was set up by Rhodia and a privately-held Austrian company, Donau Chemie, solely to bid for A&W.
Rhodia's interest in A&W derives from the fit between the companies' phosphate and surfactant businesses. The British company also makes phosphorus derivatives and acrylics.
* A&W has announced over 200 job losses following the Rhodia takeover. A two-thirds decline in operating profits since 1995 has triggered the cuts, according to the company.
