Cookson Group Plc has announced that it is considering a potential demerger or separation of its two main divisions, Engineering Ceramics (refractories) and Performance Materials (speciality chemicals).
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Steel production (pictured) was down
5% year on year in the EU
Cookson Group Plc |
In its interim management statement released 17 May, Cookson said it would initiate a strategic review of its portfolio over the next few months.
Options include a potential demerger or separation of Cookson’s main divisions, which includes Engineering Ceramics, home of leading refractories producer Vesuvius International and foundry additives supplier Foseco.
An initial analysis of costs by Cookson suggests that the likely upfront, one-off cash costs on any separation (relating, inter alia, to additional pension contributions, taxation, debt refinancing costs, and professional fees) would...