Solvay enters into merger agreement with Cytec

Solvay has entered into a definitive merger agreement with Cytec. The total cash consideration will amount to US$5.5bn, corresponding to an enterprise value of US$6.4bn. The transaction price/share of US$75.25 represents a premium of 28.9% compared to its closing price of US$58.39 on July 28, 2015 and a premium of 26.9% compared to the volume weighted average closing share price over the past three months.
"The proposed acquisition of Cytec marks a major step change in Solvay’s portfolio upgrade. It is a unique opportunity for Solvay to boost its customer offerings in lightweighting with advanced materials in aerospace and automotive, as well as to strengthen its know-how with activities in mining chemicals,” said Jean-Pierre Clamadieu, CEO of Solvay. "Cytec is a high-growth, high-quality group with leading market positions. We are looking forward to working with its excellent teams. This acquisition will create value for our stakeholders and will support our ambition to become a leader in sustainable chemistry. This transaction will lead us to further accelerate our transformation.”