IHS Chemical Week
VIEWPOINT

The price for growth

6:51 AM MDT | July 18, 2014

Albemarle’s $6.2-billion offer for Rockwood underscores the cost of building or maintaining a high-margin growth franchise in specialty chemicals (p. 7). Albemarle says the price represents an 11.3-times multiple of Rockwood’s pro forma 2014 enterprise value to Ebitda, adjusted to include expected cost savings of $100 million. J.P.Morgan estimates that, exclusive of synergies, Albemarle is paying a rich 15.5-times multiple of 2015 enterprise value-to-Ebitda for Rockwood....


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Extending Care

Our cover story this week looks at ACC’s Responsible Care program, which celebrates its 26th anniversary this year ( p. 19). Recent updates have focused on product safety and process safety as industry extends its outreach across the supply chain to counteract questions and challenges that today come more frequently from retailers, brand owners, and nongovernmental organizations (NGOs) than from regulators....

Next for Air Products

Air Products welcomes chairman and CEO Seifi Ghasemi this week in a management change spurred by activist hedge fund Pershing Square, its largest shareholder (p. 7)....

H.C. Starck Group's CFO Heuberg to leave the company

H.C. Starck Group says that Ludger Heuberg, group CFO and executive board member, will leave the company at the beginning of July to "pursue new business opportunities." The company says that Heuberg asked the supervisory board "to be relieved...

E&C markets heat up

Our cover story this week assesses engineering and construction (E&C) as the sector surges amid orders in oil and gas, petrochemicals, and fertilizers, particularly in North America (p. 23)....

Das Root of innovation

Our cover story this week reflects on the origins of modern industrial R&D, which can be traced back to the German chemical industry in the 19th century (p. 21)....

Plastics’ trade shifts

Our cover story this week focuses on plastics, including a look at how renewed US cost competitiveness and China’s use of coal-to-olefin technology will reshape the polyolefins market over the next few years (p. 25)....

Dow versus Third Point

Activist hedge fund Third Point, run by Dan Loeb, has called on Dow Chemical to provide greater detail on its petrochemical operations, arguing in a first-quarter letter issued to Third Point shareholders in early May that the segment is “underearning” by at least $2.5 billion/year (p. 13)....

Japan realigns, Asia builds

Our cover story this week focuses on Japan (p. 19). The sharp yen depreciation and aggressive fiscal stimulus have helped stabilize Japan’s economy, but producers still need to target specialties and higher-performance materials for which value and competitive position have not set by energy or feedstock costs....

Europe picks up slack

The first batch of US first-quarter earnings reports has been solid, since industrial production continues to accelerate despite weaker growth in emerging markets and weather-related impacts in the United States (p. 9). Some of the more encouraging signs are now coming from Europe....

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