While the stock market and cryptos may be crashing, the world of M&A generally keeps on an even keel. We are reminded of this with reference to Ashland Global Holdings (NYSE:ASH), a $4.5bn speciality chemicals group.
It is said to be in the sights of both EU and U.S. groups, but with the UK’s Croda International (LSE:CRODA) the leading contender. In Europe it is Clariant (VTX:CLN) who are in the frame to go for Ashland. For the record of course, the last big deal in the space was the “merger of equals” between Dow Chemical and DuPont last September. The company now known as DowDuPont (NYSE:DWDP) may also be interested in buying Ashland Global. Therefore we are looking at what could be at least a three way battle.
The mooted takeover price would be $90 plus, something which is believable given the extended bull run in the shares, and the latest solid company results. The recent typical pre-deal share price flushout towards $66 (got rid of those accidentally in the situation and set for a windfall) and a top of 2015 price channel target towards $90 also ties in with the alleged offer zone.
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