Covestro, like Lanxess, acquired a former DSM business, but with a real premium. The valuation of the resins business looks more like in the lower semiconductor ‘space’ than on the construction ‘floor’. The expected synergies are expected to nearly double the business’s profitability. Financing of the €1.6bn deal will be challenging against the background of the current situation. We understand the strategic fit of the acquisition, which strengthens CAS&rsqu
30 Sep 2020
Synergies to smoothen the acquisition's valuation
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Synergies to smoothen the acquisition's valuation
Covestro AG (1COV:WBO) | 0 0 1.2% | Mkt Cap: 18,257m
- Published:
30 Sep 2020 -
Author:
Martin Schnee -
Pages:
2
Covestro, like Lanxess, acquired a former DSM business, but with a real premium. The valuation of the resins business looks more like in the lower semiconductor ‘space’ than on the construction ‘floor’. The expected synergies are expected to nearly double the business’s profitability. Financing of the €1.6bn deal will be challenging against the background of the current situation. We understand the strategic fit of the acquisition, which strengthens CAS&rsqu