Shares of Mexico's Orbia jump after company confirms it is exploring deals
- Orbia said in a statement it would continue evaluating opportunities, including the possible sale or strategic alliance in relation to Vestolit.
- Orbia continually explores opportunities to create value for our shareholders, including possible alliances, mergers, acquisitions, sales and other types of strategic transactions.
MEXICO CITY: Shares of Mexican plastic pipe and chemicals company Orbia jumped 3.4% on Friday after it confirmed it was open to exploring mergers and sales following reports of a pending deal with Apollo Global Management for its vinyl business.
Orbia said in a statement it would continue evaluating opportunities, including the possible sale or strategic alliance in relation to Vestolit, its vinyl business, as part of a multi-year transformation strategy.
"Orbia continually explores opportunities to create value for our shareholders, including possible alliances, mergers, acquisitions, sales and other types of strategic transactions," the company said.
The Mexico City-based conglomerate, formerly known as Mexichem, said it has not entered into a binding contract for any specific transaction.
News that Apollo Global Management Inc. was close to purchasing Orbia's vinyl business, potentially valuing the unit at $2 billion or more, was first reported by Bloomberg.
The purchase could be announced as soon as this month, though a final agreement had not been reached, the US news agency said.
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