A Hexcel-Solvay Deal May Face Antitrust Concern, Jefferies Says

A Hexcel-Solvay deal would make sense from a competitive standpoint given the capital intensity of the business and Solvay’s lack of intermediate carbon fiber, Jefferies analyst Sheila Kahyaoglu wrote in a note, but added that it may cause some antitrust concern.

• Noted that HXL has a 44% share in the aerospace composite industry, with Solvay in the 28% range; the next biggest is Toray at 19%, Kahyaoglu added
  • HXL’s composite materials include structural adhesives, molding compounds, tooling materials, polyurethane systems that are used in military and commercial aircraft, wind turbine blades, recreational products and others
• However, the analyst said that ...