Today, the biggest chemical distributor in the U.S., Ashland Inc. (NYSE:ASH), agreed to acquire Hercules Inc. (NYSE:HPC) for an estimated $3.3 billion. ASH will pay $18.60 in cash for every HPC share; shareholders will also receive .093 of an Ashland share for every HPC share owned. The combined deals value every HPC share at $23.01. The combined company will add adhesive, paint, and paper additives to Ashland's sealant business, and combined sales of $10 billion. The deal is expected to close at the end of 2008 calendar year.

Contact Chip Brian

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at www.TradeTheTrend.com/signup.html