Good things come to those who wait – and raise the price – must have been the motto followed by Mexichem (Tlalnepantla / Mexico; www.mexichem.com.mx) in its persistent efforts to acquire fellow plastic pipe manufacturer Wavin (Zwolle / The Netherlands; www.wavin.com). After several unsuccessful attempts to purchase the Belgian producer (for most recent coverage, see Plasteurope.com of 03.01.2012), the two companies on 8 February 2012 announced that they had reached a conditional agreement for a Mexichem takeover, valued at EUR 531m or EUR 10.50 per each Wavin share.

Until now reluctant to agree to a takeover, arguing that Mexichem’s offers to date had been too low, Wavin’s management and board have given this latest initiative their blessing, calling it a fair price and adding that it is in the best interests of both the company and its shareholders. The board of Mexichem was unanimous in its support for the purchase, for which it plans to obtain the necessary shareholder approval during a general meeting in March 2012. The deal remains subject to certain preconditions, including approval by the Dutch authorities, and could still be terminated in the event that a bona fide third party makes a more beneficial offer.

Once completed, the combination of the two plastic pipe producers would create a global market leader, with annual sales of about EUR 4 bn. The two companies said the combined group would be better equipped for future growth thanks to consolidation and expansion into new markets, adding that their activities would be highly complementary, with very little geographic overlap.

Under the terms of the agreement, Wavin would retain a separate operating and legal structure with HQ remaining in Zwolle. The group’s brand would also be retained, as would its existing Dutch R&D centre. Not only did Mexichem commit to take over all Wavin’s employees, the Mexican group committed to providing the Dutch group’s management with new career opportunities within the proposed unified structure.