Chemical Industry Weekly News Round-Up, Jan. 27

This Week on CW:

Eastman Chemical announced plans to acquire Solutia for $4.7 billion in cash and stock, including assumed debt. The purchase price of $27.65/share, including cash and stock, represents a 42% premium on Solutia’s closing price on Thursday. The deal will create a company with proforma sales in excess of $9 billion/year.

Earnings at diversified and commodity firms were decidedly mixed, with many companies experiencing both higher selling prices and volume declines. Specialty chemical companies, however, generally beat estimates.

An unnamed U.S. propylene producer is planning a 22-cst/lb increase for February contracts, according to market sources. The increase would represent a 40% premium on current propylene contracts.

U.S. Silica, a major commercial silica producer, is expected to launch an IPO worth up to $243.5 million in the coming weeks. The offering values the company at $16-$18/share.

ZeaChem, a biochemicals firm, has secured a $232.5 million loan from the U.S. government for construction of its first commercial-scale biorefinery.

Around the Web:

The IMF has cut its estimate for 2012 global GDP growth to 3.3% from 4% on fears of a European recession, in The New York Times.

Standard & Poor’s is likely to downgrade Greece’s credit rating to “selective default,” Reuters reports.

President Obama declared support for an “all-of-the-above” energy approach, including natural gas, in Tuesday’s State of the Union, while also endorsing regulation of hydraulic fracturing, in The Hill’s E2-Wire.