Leading chemical distribution companies Univar Solutions and Brenntag have parted ways without reaching a deal. The two companies, who in November 2022 confirmed that early-stage negotiations were ongoing about a possible acquisition by Brenntag of Univar, are ‘no longer proceeding with those discussions’.
It had previously been suggested by an investor in the company that Univar was 'undervalued in the public market and, in turn, a highly attractive acquisition target for qualified buyers'. In an open letter to the Board of Directors, the investor, Engine Capital, who holds approximately 1% of the outstanding shares in Univar, urged Univar to announce a 'competitive and formal sale process' to ensure the 'Board has all the information needed to make a value-maximising decision that benefits all shareholders'.
In a statement, Univar confirmed it is currently looking at other options.The company said that it and its Board of Directors are ‘committed to acting in the best interest of its stockholders and will continue discussions relating to other indications of interest that have been received with respect to a potential transaction’.
Univar emphasised, however, that there can be 'no assurance that the ongoing process will result in any transaction'. The company said it does not intend to make any additional comments regarding this matter unless and until it is appropriate to do so.