Chemical Finance Digest, Sept. 19-23
3:25 PM MDT | September 26, 2011 | By VINCENT VALK
Toping the headlines last week, Evonik's owners said they would postpone the company's IPO until 2012, at the earliest, due to unfavorable capital market conditions. Evonik, which is owned by RAG Foundation and CVC Capital Partners, recorded $10.3 billion in sales during the first half of this year.
In M&A news, SK Capital has raised $500 million for a fund targeted at investments in chemicals and materials, $100 million more than the firm initially targeted. Siam Cement is planning to acquire a 30% stake in Chandra Asri Petrochemical for $416 million. Meanwhile, DuPont is said to be considering a sale of its majority stake in a soy-based chemical joint venture with Bunge.
In debt news, both Moody's and Standard & Poor's raised Lubrizol's credit rating multiple notches now that the company is a part of Berkshire Hathaway. Moody's also raised Solutia's outlook to positive on account of improvements in operating income and credit metrics.
In other headlines, Lanxess has confirmed its full-year earnings guidance, while H.B. Fuller's net income rose 22% during the fiscal third quarter.
In macroeconomic news, U.S. housing starts fell 5% in August to an annual rate of 571,000, among the lowest levels since 1946. "There is still no sign yet of a pickup in housing," says IHS Global Insight economist Patrick Newport.
The week ahead will see the latest estimate of second-quarter U.S. GDP growth numbers released on Thursday.