Brenntag a ‘logical suitor’ for Univar, says Jefferies

After Brenntag (BNTGY) announced it is exploring a potential acquisition of Univar (UNVR), Jefferies analyst Laurence Alexander said he believes such a transaction would be "a logical step" that would create a leading chemical distributor with significant competitive advantages over regional competitors. Brenntag could offer $69 per share and meet the chemical sector M&A metric used during the QE era, but "a much more conservative framework would be for Brenntag to aim for a deal ROIC comparable to conducting a buyback, which would imply an offer price of $35, said Alexander. He has a Buy rating and $37 price target on Univar shares, which are up $2.85, or 9%, to $33.85 in pre-market trading after Univar confirmed that it has received a preliminary indication of interest from Brenntag.