NEW YORK (TheStreet) -- Shares of Westlake Chemical (WLK) - Get Report are rising by 2.66% to $46.26 on heavy trading volume late Friday morning, after the company agreed to purchase Axiall (AXLL) for about $2.33 billion.
Houston-based Westlake will pay $33 per share in cash for Axiall, representing a 28% premium to Thursday's $25.81 closing price.
The deal has an enterprise value of about $3.8 billion, including debt and other liabilities, according to a company statement.
The transaction is expected to close during the fourth quarter.
The combined company will be the third-largest chlor-alkali producer and the second-largest PVC producer in North America.
Combined pro forma revenues are projected to be $7.6 billion for the last 12 months that ended in the first quarter, the companies said.
The agreement ends a six-month battle, which included multiple offers and a rival bid from South Korean company Lotte Chemical, Reuters noted.
Axiall stock is surging 26.04% to $32.53 on heavy trading volume late Friday morning. About 27.78 million of the company's shares were traded so far today vs. its average volume of 1.09 million shares per day.
Roughly 1.97 million of Westlake's shares changed hands by late this morning compared to its average volume of 1.15 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and attractive valuation levels.
But the team also finds weaknesses including feeble growth in the company's earnings per share, weak operating cash flow and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: WLK