Rhodia shares jump on Chinese deal

17th June 2010, Comments 0 comments

Shares in French chemicals group Rhodia jumped on Thursday after news it was buying a Chinese company to help boost its presence in the Asian giant's booming economy.

Rhodia stock was up 4.42 percent at 15.00 euros in mid-afternoon trade while the wider Paris market gained 0.49 percent.

The company announced late Wednesday that it would acquire Feixiang Chemicals, making Asia the source of about a third of its total sales, up from 25 percent currently.

It did not say how much it was paying but said the Chinese group was worth about 400 million euros (490 million dollars).

Analysts said the deal offered Rhodia fast growth and represented good value if done at 400 million euros.

© 2010 AFP

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