3M AND Honeywell International signed separate takeover deals to expand their broad lineups of industrial goods at a time of uncertainty for the US economy.
3M said it would pay $860 million to buy industrial ceramics company Ceradyne. This is the biggest takeover deal for the maker of products ranging from Post-It notes to films used in television screens since it named Inge Thulin chief executive in February.
Honeywell announced plans to pay $525 million in cash for a 70 per cent stake in privately held Thomas Russell Co, which makes equipment used in natural gas production. Big US manufacturers including General Electric have invested heavily to boost their exposure to that sector amid a surge in US natural gas production driven by advances in hydraulic fracturing, or fracking, technology.
“If the asset makes sense and the price makes sense, you go for it,” said independent analyst Brian Langenberg.
Ceradyne shares were up 43 per cent at $34.94 in early trading, just below the $35.00 offer price from 3M, whose stock gained 1 per cent to $93.32. Honeywell rose 1.7 per cent to $60.74. – (Reuters)
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