Chemtrade Logistics Income Fund confirms discussions to acquire Canexus Corp

TORONTO – Chemtrade Logistics Income Fund says it’s in talks to buy Canexus Corp. (TSX:CUS), which had previously rejected a hostile takeover offer.

It’s offering $1.65 per share for the Calgary-based sodium chlorate producer.

That’s up from an earlier bid of $1.50 per share that Canexus urged its shareholders to reject.

However, Chemtrade says there can be no assurance that any transaction will result from the negotiations.

Chemtrade (TSX:CHE.UN) says reaching a deal would be subject to, among other things, the negotiation and execution of a definitive transaction agreement, voting support agreements and approval by the boards of both companies.

Toronto-based Superior Plus pulled out of a deal to buy Canexus earlier this year following comments by the U.S. Federal Trade Commission that it would try to block the transaction because of its impact on competition in North America’s sodium chlorate market.