DuPont stock gains after $11 billion deal to sell most of its M&M business to Celanese

32959 dupont stock gains after 11 billion deal to sell most of its mm business to celanese

Shares of DuPont de Nemours Inc. DD, -1.20% rallied 1.6% in premarket trading Friday, after the chemicals company announced an agreement to sell a majority of its Mobility & Materials (M&M) business for $11 billion in cash to Celanese Corp. CE, -5.25% Celanese’s stock was still inactive ahead of the open. As part of the deal, Celanese will acquire a production network of 29 facilities, customer and supplier contracts and agreements, about 5,000 employees across the manufacturing, technical and commercial organizations. Celanese expects to achieve $450 million in synergies within the first four years after the deal closes, which is expected to occur around the end of 2022. “M&M has historically been a strong generator of cash flow,” said Celanese Chief Financial Officer Scott Richardson. “We are confident in our ability to capture synergies that would allow us to double Celanese total free cash flow within the next five years.” DuPont’s stock has gained 0.3% over the past three months through Thursday and Celanese shares have dropped 8.8%, while the S&P 500 SPX, -0.72% has shed 6.9%.

Source: Marketwatch

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