Chemical manufacturer Platform Speciality Products (LON:PAH) is nearing the takeover of rival firm Alent (LON:ALNT) for £1.35bn.
The two companies reached an agreement that values each Alent share at 503p, a 49% premium to Friday’s closing price.
The bid will see Woking-based Alent bought by MacDermid Performance Acquisitions, a subsidiary of Florida-based Platform.
Daniel Leever, chief executive of Platform said: “Alent will far enhance the breadth, depth and overall footprint of Platform's performance applications segment.”
Alent, which was once part of Cookson Group, became its own company in 2012 when Cookson changed its name to Vesuvius (LON:VSVS) and spun-off its former performance materials division.
It is one of the world’s largest supplier of soldering products.
Andrew Heath, chief executive of Alent, said: “Since the successful demerger of Alent at the end of 2012, our market leading businesses have outperformed their end-markets and delivered increasing returns.
“The significant premium being offered by Platform recognises the progress Alent has made, the opportunities in front of us and the overall quality of the business, whilst also presenting a clear opportunity for our shareholders to realise the full value of their investment earlier.”
The board is recommending the takeover to shareholders, who have the option of receiving shares in the new company in place of cash.
Shares in Alent rocketed 44% to 488p on the news.