U.K. specialty-chemical company Elementis turned down a third acquisition offer in five months. Rival Innospec said Tuesday it is no longer considering an acquisition of Elementis after the latter company’s board rejected a 160 pence per share offer made late last month.

“On 31 March 2021, an approach was made by Innospec to the Board of Elementis. This approach was rejected by the Board of Elementis on 9th April 2021 and Innospec subsequently ceased active consideration on 15th April 2021.

“The approach sought the support of the Elementis Board for a possible all share offer of 160p per Elementis share with a maximum 50% cash alternative with mix and match facility.

“As a result of the rejection, Innospec is no longer currently considering this acquisition.

“Innospec believes the combination of the companies would have created benefits for both sets of shareholders given the compelling strategic fit.

“The Proposal would have enabled Elementis shareholders to share in future value creation substantially beyond the headline offer price through significant anticipated synergies and an expected re-rating of the Elementis business to Innospec’s materially higher valuation multiple.

“Innospec remains highly focused on delivering value for its own shareholders. Innospec will only pursue transactions which meet its investment criteria and where it is appropriate to do so, taking into account the importance of maintaining a prudent capital structure under current economic conditions. 

“Elementis shares pared a gain of as much as 22% to trade up just 1% at 137 pence.