Rhodia's Deal For ChiRex Draws Skepticism.(Brief Article)

Chemical Market Reporter, July, 2000 by MILMO, SEAN

Analysts caution that obstacles may be greater than the companies expect. RHODIA'S BID to take over ChiRex, the US-based pharmaceutical contract research and manufacturing company, underscores the specialty chemicals manufacturer's determination to become stronger in fast-growing and high-added-value businesses.

But although European analysts applaud the strategy behind the acquisition, many lack Rhodia's optimism about ChiRex or the pharmaceutical market. Last week, Rhodia said that the acquisition of ChiRex, for which it is paying $545 million through a share offer with a 55 percent premium, would create a leading trans-Atlantic business in high-tech services to the pharmaceutical industry with pro-forma annual sales of $187 million. The...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.