Innospec Inc. announced that it has withdrawn its takeover bid for Elementis plc.

Based in Englewood, Colorado, U.S.A., Innospec is a global specialty chemicals company with manufacturing plants, research centers and additional facilities in 23 countries. The company provides chemicals, additives and formulations for markets including agrochemicals, construction, fuel, home care, metal extraction, oilfield, personal care, and polymers and waxes. It has a market capitalization of approximately USD2.38 billion. Innospec shares are traded in NASDAQ.

Elementis plc is one of the UK’s largest speciality chemicals and personal care businesses, with extensive operations in the United States, Europe and Asia. It has a market capitalization of approximately GBP766.65 million (USD1.06 billion). Elementis is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

On 31 March 2021, an approach was made by Innospec to the Board of Elementis. The approach sought the support of the Elementis Board for a possible all share offer of 160 pence (USD2.23) per Elementis share, with a maximum 50% cash alternative with mix and match facility. With about 580 million shares outstanding, the Innospec offer valued Elementis at roughly USD1.29 billion. 

News reports of the potential Innospec takeover sent shares of Elementis soaring as much as 22%. Shares are now trading lower at around 132 pence (USD1.84).

The Innospec offer was rejected by the Board of Elementis on 9 April 2021. Innospec subsequently ceased active consideration to acquire Elementis on 15 April, according to a statement issued by Innospec on 20 April.

“Innospec believes the combination of the companies would have created benefits for both sets of shareholders given the compelling strategic fit,” Innospec said in the statement.

Innospec said it remains highly focused on delivering value for its own shareholders. “Innospec will only pursue transactions which meet its investment criteria and where it is appropriate to do so, taking into account the importance of maintaining a prudent capital structure under current economic conditions.”