SGL Carbon share price dips following ChemChina approach reports rally

Tom Brown

30-May-2016

Europe chem producers face financial headwindsLONDON (ICIS)–Shares in SGL Carbon dipped in afternoon trading on Monday following a 27 May rally on the back of reports that ChemChina has entered into talks with the Germany-based carbon specialist with a view to acquisition.

ChemChina chairman Ren Jianxin has held with SGL Group chief Juergen Koehler and key shareholder Susanne Klatten, according to German business title Manager Magazin.

SGL is reportedly looking to spin off its carbon electrodes business, which has significant exposure to the steel sector, currently weakened by lower pricing, while ChemChina is understood to be looking to acquire the whole of SGL but is open to other options.

Shares in SGL Carbon SE rose on 27 May following news of the talks, closing up over 29% compared to Friday’s opening price, but investor exuberance tapered off on Monday, with prices falling 15.69% as of 15:15 BST to €11.31 per share.

ChemChina is also working on completing the $43bn acquisition of Switzerland-based agrochemicals major Syngenta.

Syngenta had not responded to requests for comment at the time of publication.

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