Michelin acquires Fenner polymer producer for $ 1.7 billion

French manufacturer of automobile tires Compagnie Generale des Etablissements Michelin SA has reached an agreement on the acquisition of a manufacturer of products from polymer materials Fenner Plc for 1.2 billion pounds ($ 1.67 billion).

As reported in the press release of Michelin, the company will pay 610 pence per share of Fenner, which is 31% higher than the value of securities at the close of trading last Friday. Michelin expects that the deal will increase its profits in the first full year after its completion, and bring a synergy of 30 million pounds.

Fenner Plc, tracing its history since 1861, produces various products for oil and gas, construction, aerospace, medical, mining and agricultural enterprises. Shares of Michelin in early trading on Tuesday, rising by 0.2%. Over the past 12 months, the company's capitalization has grown by 15%, to 22.82 billion euros.

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