Axiall's Stock Soars After Deal To Be Acquired By Westlake At a 28% Premium

Shares of Axiall Corp. soared 25% in premarket trade Friday, after the chemical company agreed to be acquired by Westlake Chemical Corp. in a cash deal valued at $3.8 billion, including debt. As part of the deal, Westlake will pay $33 for each Axiall share outstanding. That represents a 28% premium to Thursday's closing price of $25.18 for Axiall's stock, and values Axiall at about $2.3 billion. Westlake expects the acquisition, which is expected to close by the fourth quarter of 2016, to add to earnings in the first year, and to have cost synergies of about $100 million. Westlake's stock tacked on 0.1% ahead of the open. Axiall's stock, which has run up 68% year to date through Thursday, hasn't traded as high as $33 since July 16, 2015.