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<h2>Belgium Solvay to Buy U.S Peer Cytec: Ginormous Deal</h2>
Belgium chemical group company Solvay will buy U.S Peer Cytec for $ 5.5 billion to dominate its presence in lightweight companies for planes and cars and it will also uplift their mining chemical business. Cytec is one of the gargantuan companies whose essence of revenue is generated from North America and it comprises of 4,600 employees. It makes composite and adhesive materials for the aerospace and automotive industries and reagent chemicals used in the mining sector for mineral processing and solvent extraction.
Solvay said in a statement on Wednesday it would pay $75.25 per share for Cytec in cash, which closed at $58.39 on Tuesday. The Belgian company said the enterprise value, which includes debt, was $6.4 billion, representing a 2015 estimated. Merger always establish on conditions, here Solvay expects to make annual savings of 100 million Euros and Cytec would add its earnings per share after first year. Financial transaction of Belgium Group starts with a 1.5 billion euros ($1.66 billion) rights issue, 1.0 billion euros of hybrid debt instruments and a senior debt issue.
Solvay also announced its second quarter results on Wednesday. Core profit, adjusted for one-off items rose 8.1 percent in the second quarter to 500 million Euros, in line with the 499 million expected in a Reuter’s poll of seven analysts. The company said its specialty materials and chemicals businesses gained, but demand declined substantially for chemicals used in the oil and gas sector.