Chemical and ingredients distributor Univar’s (NYSE:UNVR) potential acquisition by peer chemical distributor Brenntag (OTC:BNTGY) has reached a dead end. The latter decided not to proceed with talks of acquiring Univar, indicating that such a transaction might not take place.
In November last year, Brenntag announced that it was actively deliberating the transaction with Univar. Following this announcement, activist investor Engine Capital, which owns about a 1% stake in Univar, expressed support for the acquisition and suggested that the company should consider inviting other interested bidders as well.
In October, Engine Capital valued Univar at approximately $38-$44 per share for its acquisition. Univar has intended not to make additional comments until the matter sees any further development.
Is UNVR a Buy, According to Analysts?
Wall Street is bullish on Univar, possibly due to the likelihood that it will be acquired soon. The stock has a Strong Buy consensus rating based on four Buys and one Hold. The average price target of $33.58 reflects an upward potential of 6.29% over the next 12 months.
