NEW YORK (TheStreet) -- Shares of Axiall (AXLL) are surging by 25.73% to $32.45 on heavy trading volume Friday morning, after the company accepted Westlake Chemical's (WLK) takeover offer of $2.33 billion.
Westlake stock is up by 2.42% to $46.15 this morning.
Houston-based Westlake will pay $33 per share in cash, representing a 28% premium to Thursday's $25.81 close. The deal has an enterprise value of roughly $3.8 billion, including debt and other liabilities.
The transaction is expected to close in the fourth quarter.
The agreement ends a battle that started in January, when Axiall rejected a $20 cash-and-stock offer. Axiall then rejected a sweetened offer in March of $1.6 billion, or 23.35 per share in cash and stock.
The combined company will be the third-largest chlor-alkali producer and the second-largest PVC producer in North America, with expected combined pro forma revenues of $7.6 billion for the last 12 months that ended in the first quarter, according to a statement by the companies.
About 25.91 million shares of Axiall have been traded so far today, well above the company's average trading volume of roughly 1.09 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
Axiall's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: AXLL
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 article's author.