Orlando, FL 7/19/12 (StreetBeat) – Shares of Georgia Gulf (NYSE:GGC) are trading up 14% this morning after reaching a deal for a merger with PPG Industries (NYSE:PPG), giving it a large stake and control in a newly formed chemicals player. PPG Industries plans to spinoff its chemicals operations and merge it with Georgia Gulf, with PPG shareholders getting 50.%% and Georgia Gulf will have 49.5%.
Earlier this year, Georgia fought off a hostile takeover attempt from rival Westlake Chemical, saying that it was doing just fine and the $35 offer price wasn’t fair. The transaction between Georgia Gulf and PPG is worth $2.1 billion, with PPG getting $900 million in cash and $1 billion in shares of Georgia Gulf. The combined company will have about $5 billion in annual revenues and be the #3 producer in North America of chlor-alkali, a chemical used in chlorine, PVC piping, and other uses.
Georgia Gulf shares jumped 14% to $33.04 in trading Thursday while PPG added 7% to $111.63.
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