Albright & Wilson spoiled for choice
15 Jan 2000
Albright & Wilson, one of Britain's oldest chemical firms, could soon be in American hands - or French ones. The inorganic chemicals company is currently the subject of rival bids from both Albemarle of the US and Rhodia, the industrial chemicals offshoot of Rhone-Poulenc.
Albemarle was the first bidder, weighing in with an offer of £410million. A supplier of speciality polymers and fine chemicals, particularly for the surfactants, biocides and water treatment markets, Albemarle wanted the UK firm to boost its activities in several sectors. Chairman and chief executive Floyd Gottwald comments: `the combination will provide a larger global presence, new technological opportunities and new customer relationships that we believe will increase value for our shareholders.'
The board of Albright & Wilson recommended acceptance of Albemarle's offer, but the following day it recieved another, from Rhodia. Its bid, of £455million, beats Albemarle's financially and, according to City analysts, strategically. Albemarle's product base is in bromide chemistry, whereas A&W and Rhodia are both established players in the phosphate sector; the French comapny's bid therefore has more potential for overlaps and cost-savings.
As PE went to press, A&W had yet to comment on the Rhodia offer.
