Solvay's

How far the deal helps reduce the cyclicality of Solvay's business is less clear.

Solvay's Cyclical Thinking Matthew Curtin 2011

A counteroffer for Rhodia still could be possible given that the stock is very liquid, said analysts at Paris-based brokerage Oddo, though they noted that they haven't identified any companies with a balance sheet sufficiently strong to mount a bid topping Solvay's offer.

Solvay to Buy Rhodia for $4.84 Billion Elena Berton 2011

The new group will derive 40% of revenue from faster-growing emerging markets, compared with Solvay's 25%.

Solvay's Cyclical Thinking Matthew Curtin 2011

They said Rhodia will boost Solvay's geographical exposure, particularly in Asia, one of the most promising markets for the companies' businesses.

Solvay to Buy Rhodia for $4.84 Billion Elena Berton 2011

It reduces Solvay's reliance on Europe, where environmental regulations are tightening.

Solvay's Cyclical Thinking Matthew Curtin 2011

Rhodia will boost Solvay's exposure to the consumer-goods and automotive sectors and reduce its reliance on construction; together, they will also be a top-three supplier in the markets responsible for 90% of combined annual revenue.

Solvay's Cyclical Thinking Matthew Curtin 2011

Solvay's average energy bill and carbon-dioxide emissions will fall.

Solvay's Cyclical Thinking Matthew Curtin 2011

Solvay's offer is generous, equivalent to a 50% premium to Rhodia's closing price on Friday and a shade over the €30 peak the shares reached in 2007, before the spike in oil prices and then the financial crisis badly dented confidence in the stock.

Solvay's Cyclical Thinking Matthew Curtin 2011

But the new Solvay-Rhodia combination won't reduce Solvay's exposure to external economic shocks and the company's performance will continue to shift with macroeconomic trends.

Solvay to Buy Rhodia for $4.84 Billion Elena Berton 2011

PARIS—Belgian chemicals and plastics company Solvay SA said Monday that it will buy Rhodia SA in a friendly deal that values the French specialty-chemicals maker at €3.4 billion $4.84 billion and will expand Solvay's footprint in fast-growing emerging markets.

Solvay to Buy Rhodia for $4.84 Billion Elena Berton 2011