• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Additives Update

    Pigment Supplier Directory

    Interior Architectural Coatings

    Biocides Update

    Powder Coatings Market
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    PPG Reports Q4, Full-year 2020 Financial Results

    BASF Begins Implementing Ralignment of Global Business Services Unit

    Nouryon Appoints Curtis Espeland to Board of Directors

    AMETEK Brookfield Opens Media Room at US HQ

    PPG Directors Announce Quarterly Dividend of 54 Cents Per Share
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    AMETEK Brookfield Opens Media Room at US HQ

    AkzoNobel Supplying Powder Coatings for Landmark Water Pipeline in China

    IGL Coatings Launches Graphene Reinforced Dual System Ceramic Coating

    Miller Paint Declares Simple Serenity its 2021 Color of the Year

    TAUBMANS Paint by PPG Releases ‘Chromatic Joy’ Palettes
    Additives
    Binders
    Pigments
    Solvents

    Active Minerals Announces Shipping Container Surcharge

    Huntsman Finalizes Acquisition of Gabriel Performance Products

    LANXESS Acquires Biocides Specialist INTACE

    dar-tech, inc. Becomes U.S. Midwestern Distributor for ZS Interpolymer

    OQ Chemicals Announces Carboxylic Acids Price Increase
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Shepherd Color Company, The

    Active Minerals

    Pilot Chemical Company

    ROSS Mixers

    Siltech Corporation
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    The Waterborne Symposium (2021)

    Cleveland Coatings Society Zoom Meeting

    Surface Finishing Mexico 2021

    Cleveland Coatings Society Zoom Meeting

    Cleveland Coatings Society Zoom Meeting
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    ROSS Mixers

    Active Minerals

    Eagle Specialty Products

    Siltech Corporation

    Shepherd Color Company, The
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Expert's Opinion

    Celanese Corporation - Analyst on Abandoned Merger Agreement with Blackstone’s Rhodia Acetow

    ...

    Celanese Corporation - Analyst on Abandoned Merger Agreement with Blackstone’s Rhodia Acetow
    Related CONTENT
    • PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU
    • Coatings Supply Chain in Europe Continues Opposition to CLP Regulation of TiO2
    • GMI: Composite Adhesives Market to Exceed 850 Kilo Tons Consumption by 2024
    • Construction Chemicals Market: Current Business Trends & Growth Opportunities 2016-2024
    • APD, CE - Analyst Provides Takeaways After Results, Raises CE PT by $7
    08.12.18
    Celanese Corporation (CE: Hold, $114 PT) 
    Filter Tow JV Goes Up in Smoke

    • Europe kills Celanese’s planned filter tow JV with Blackstone. After the close on Monday, Hold-rated Celanese announced that it has abandoned its merger agreement with Blackstone’s Rhodia Acetow business. The two parties were unable to reach an agreement with the European Commission on acceptable conditions to allow the proposed joint venture to proceed. We are not terribly surprised by the outcome as we had viewed anti-trust risk in Europe as a formidable deal risk from day one. Since then, European regulators have taken a harder line on several cross-border M&A transactions, including Bayer-Monsanto, Praxair-Linde, and Tronox-Cristal. The good news for Celanese is that impact to consensus earnings expectations is likely to be muted. We had not incorporated the Blackstone JV deal into our financial model, due in part to uncertainty of closing (and timing thereof) and we suspect that is the case with several other analysts as well. Meanwhile, as we discuss below, we believe the company’s earnings outlook is trending nicely overall, aided by recent strength in acetyls.
    • Near-term reaction: shares could come under pressure as JV fears are confirmed. While we believe that our anti-trust concerns were shared by many investors, we would nevertheless expect CE shares to trade lower in Tuesday’s session as several deal-related benefits – industry consolidation, EPS accretion, financial flexibility and new strategic options – will now not be available to Celanese, at least as previously contemplated. To a smaller degree, we suspect that shares of Buy-rated Eastman Chemical could ease in sympathy, at least on a relative basis due to...
    • Longer term key: how is Celanese’s portfolio strategy likely to evolve? While consummation of the Blackstone JV would have been nice to see, management has other strategic options, such as the potential to separate one or both of the Materials Solutions businesses, Advanced Engineered Materials (AEM) and Consumer Specialties (CS) form the two Acetyl Chain lines, Acetyl Intermediates (AI) and Industrial Specialties (IS). We see several factors that would facilitate a spin-off scenario...
    • We raise our 2018 EPS estimate by $0.15 or 1.8%. We increase our 2018 EPS estimate to $8.65 from $8.50, primarily as a result of recent strength in acetic acid and derivative as discussed in our most recent edition of Commodity Chemical Calculus (click here). We note that Celanese management increase its 2018 EPS growth outlook back on 28 February to a new range of +12-16% from a previous range of +10-14%. Our new EPS estimate of $8.65 reflects EPS growth of more than 15% relative to $7.50E in 2017. Likewise, our 2019 estimate rises to $9.25 from $9.15. 
    • We rate CE shares Hold and trim our price target by $2 to $114. Our revised target suggests shares offer moderate upside of 9-10%, including a dividend yield of 1.7%. As a reminder, we value Celanese based on an average of three methodologies; DCF analysis, a relative P/E framework, and a relative EV/EBITDA framework. Our DCF suggests a warranted stock price of $152. Using our relative valuation framework, our P/E multiple implies a fair value of $102 while our EV/EBITDA implies a fair value of $87 per CE share.
    (Please see full report for details)
     
    Related Searches
    • chemical
    • industrial
    • case
    • merger
    Suggested For You
    PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU
    Coatings Supply Chain in Europe Continues  Opposition to CLP Regulation of TiO2 Coatings Supply Chain in Europe Continues Opposition to CLP Regulation of TiO2
    GMI: Composite Adhesives Market to Exceed 850 Kilo Tons Consumption by 2024 GMI: Composite Adhesives Market to Exceed 850 Kilo Tons Consumption by 2024
    Construction Chemicals Market: Current Business Trends & Growth Opportunities 2016-2024 Construction Chemicals Market: Current Business Trends & Growth Opportunities 2016-2024
     APD, CE - Analyst Provides Takeaways After Results, Raises CE PT by $7 APD, CE - Analyst Provides Takeaways After Results, Raises CE PT by $7
    Chemicals - Analyst Looks at Factors Driving Petrochemical Sector in February Chemicals - Analyst Looks at Factors Driving Petrochemical Sector in February
    Local Market Trend Dictated Topics For CHINACOAT2017 Local Market Trend Dictated Topics For CHINACOAT2017
    EU Coatings Manufacturers Experience Growth Bolstered by Record High GDP EU Coatings Manufacturers Experience Growth Bolstered by Record High GDP
    SHW, PX, CE, APD - Analyst Comments Mixed Results, 2018 Outlooks SHW, PX, CE, APD - Analyst Comments Mixed Results, 2018 Outlooks
    Harwood, Schroeter-Denzin Join Gelest European Sales Team Harwood, Schroeter-Denzin Join Gelest European Sales Team
    Analyst Looks at Sector in Monthly Commodity Chemical Calculus Report Analyst Looks at Sector in Monthly Commodity Chemical Calculus Report
    Analyst Provides 2018 Outlook, Has Ratings Changes for OLN, LYB and WLK Analyst Provides 2018 Outlook, Has Ratings Changes for OLN, LYB and WLK
    Sustainability Key Issue for SME  European Coatings Manufacturers  Sustainability Key Issue for SME European Coatings Manufacturers

    Related Expert's Opinion

    • Chemical Industry’s Response to Crisis While in Crisis

      Chemical Industry’s Response to Crisis While in Crisis

      ...
      Dean Curtis, President and CEO of ICIS 05.22.20

    • Automotive Coatings
      A Brief Introduction to Importance of Automotive Paint Additives

      A Brief Introduction to Importance of Automotive Paint Additives

      ...
      Swamini Kulkarni 05.18.20

    • Breaking News | Marine Coatings | Paint & Coatings Manufacturer News
      Jotun: It’s Time for a

      Jotun: It’s Time for a 'Revhullution'

      Jotun Hull Skating Solutions.
      Jotun 05.11.20


    • Additives
      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Lux Research Predicts Which Chemical Manufacturing Platforms Will Be Electrified By 2050

      Report shows innovations in CO2 electrolysis will lead to displacement of natural gas for pure carbon monoxide and formic acid production by 2050.
      Lux Research 04.07.20

    • Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Synthetic Biology Has High Potential as Alternative Production Method for Chemicals

      Fermentation holds the key to cost savings, greater innovation, and creation of novel products.
      Lux Research 04.02.20

    • AkzoNobel: How Our Products Contribute to Critical Industries

      AkzoNobel: How Our Products Contribute to Critical Industries

      ...
      AkzoNobel 03.30.20


    • In the Future of Plastic Recycling, No Singular Technology Will Dominate

      In the Future of Plastic Recycling, No Singular Technology Will Dominate

      ...
      Lux Research 01.30.20

    • Breaking News
      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Frost and Sullivan: Digital Transformation Poised to Revolutionize Paints and Coatings Industry

      Adoption of big data, AI, and AR will aid coatings companies to uncover new revenue streams and attract new customers.
      01.15.20

    • Market Reports  | Pigments

      Evolving Automotive Sector Fueling Global Pigments Market Trends

      APAC to also emerge as a strong growth avenue, Pankaj Singh writes.
      Pankaj Singh 12.06.19


    • Breaking News
      PPG

      PPG's TAUBMANS, WHITE Knight Paints Reveal Top 7 Mini-makeovers Achievable with Tax Refund

      Company’s paint experts team with Cherie Barber to inspire DIY transformations.
      08.12.19

    • Commercial Construction Index Shows Surge in New Business Confidence

      ...
      06.20.19

    • Breaking News
      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      PX - Analyst Trims PT as Merger with Linde Faces Regulatory Concerns in EU

      ...
      09.02.18


    • Breaking News | Market Reports
      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Production Shutdowns, Second Dip in Operating Rates Challenge Global Methyl Methacrylate Market

      Research by IHS Markit.
      08.28.18

    • Breaking News
      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      Chemicals - Analyst Positive at IHS Markit’s 33rd annual World Petrochemical Conference

      ...
      08.26.18

    • Breaking News
      Lithium Landscape - Analyst Provides a

      Lithium Landscape - Analyst Provides a 'Who's Who' in Sector, Looks at 30+ Industry Players

      ...
      08.19.18

    Trending
    • BASF Begins Implementing Ralignment Of Global Business Services Unit
    • PPG Reports Q4, Full-year 2020 Financial Results
    • AkzoNobel Proposes To Acquire Tikkurila For €31.25 Per Share
    • AkzoNobel Supplying Powder Coatings For Landmark Water Pipeline In China
    • LANXESS Acquires Biocides Specialist INTACE
    Breaking News
    • PPG Reports Q4, Full-year 2020 Financial Results
    • BASF Begins Implementing Ralignment of Global Business Services Unit
    • Nouryon Appoints Curtis Espeland to Board of Directors
    • AMETEK Brookfield Opens Media Room at US HQ
    • PPG Directors Announce Quarterly Dividend of 54 Cents Per Share
    View Breaking News >
    CURRENT ISSUE

    January 2021

    • Additives Update
    • Pigment Supplier Directory
    • Interior Architectural Coatings
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    NIH Study Compares Low-Fat, Plant-based to Low-Carb, Animal-Based Diet
    Gadot Positions Mineral Line for Vegan Market
    Nutritfy India to Launch Global Broadcast Channel Covering Nutrition
    Coatings World

    Latest Breaking News From Coatings World

    LINE-X Launches Dealer Program with International Truck
    PPG Reports Q4, Full-year 2020 Financial Results
    BASF Begins Implementing Ralignment of Global Business Services Unit
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    Cretex Companies CEO Steps Down
    Data Show Porex's Medical Device Filtration Materials Protect Against Virus, Bacteria Spread
    Endoscopic Hemostasis Devices Market Valued at $730 Million
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Pfizer, BioNTech Enter Vax Pact with COVAX
    FDA Approves Janssen’s CABENUVA
    AGC Biologics Appoints Boulder Site GM
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Coty Appoints Chief Procurement Officer
    Lageen Tubes Launches Mono-Material PE Tube Solutions
    Jason Jones Loses Battle with Covid-19
    Happi

    Latest Breaking News From Happi

    Carol’s Daughter Adds New Hair Products
    Moroccan Gold Series Launches NuDo Shampoo
    Youbody Debuts Waterless Body Wash
    Ink World

    Latest Breaking News From Ink World

    BOBST Demonstrates Future of Flexible Packaging Production at Virtual Open House
    Morancé Soudure France Adds Comexi F2 MC 10-color Flexo Press
    AR Packaging Acquiring Firstan Holdings Ltd
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Gallus planning virtual event for March
    Lemu Group engineers mask-making machine
    Niagara Label upgrades with Nilpeter flexo press
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Freudenberg to Establish Apparel Interlining Competence Centers
    Minet Adds Spunlace Line in Romania
    Lemu Group Engineers Mask-Making Machine
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Cretex Companies CEO Steps Down
    Conformis Enters Development & Supply Agreement with SITES Medical
    Sectra, RSA Biomedical Sign Distribution Agreement for Implant Stability Tool
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    UDC Subsidiary Adesis' Website Wins 2020 MarCom Platinum Award
    Ambiq Wins IoT Semiconductor Company of the Year Award
    Ynvisible Names Michael Robinson CEO, Jani-Mikael Kuusisto SVP Ventures

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login