I had been bullish on Taminco (NYSE:TAM)
for a little while, seeing it as an undervalued specialty chemical
company with a strong foundation in functional amines, specialty amines,
and crop chemicals. Eastman Chemical (NYSE:EMN) apparently shared my feelings, as the company announced an acquisition last Thursday at the $26 fair value I indicated in my last piece.
While
there is a 30-day "go shop" period for Taminco, I'm not counting on a
rival bidder to emerge (though Taminco is a relatively rare quality
asset), and I look for Taminco to further Eastman's decade-long
transition toward a specialty chemical focus. The immediate upside for
Eastman looks relatively modest (around 5%), but I wouldn't
underestimate the added diversity, specialty markets, and synergy
potential that Taminco will bring with it.
Continue reading here:
Eastman Chemical's Taminco Deal Looks Solid
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