Filing Flows › Chemical & Mining Co of Chile (SQM) › Takeover & LBO
Is Chemical & Mining Co of Chile (SQM) a takeover target?
A leveraged buyout at today's price plus 30% ($71.05 a share) would return a loss of about 8% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.22 a share (−32% against today's $54.65).
The buyout, step by step
| Entry | Amount | How |
|---|---|---|
| Offer price a share | $71.05 | today's $54.65 plus 30% |
| × shares | 285.6 million | |
| = Equity value | $20.3B | |
| + Debt refinanced | $0 | |
| − Cash | $0 | |
| = Enterprise value | $20.3B | 14.4× EBITDA of $1.4B |
| Fees | $406M | 2% of the price |
| New debt | $7.7B | 5.5× EBITDA at 7.65% a year; the limit that binds: 5.5× EBITDA |
| Buyer's own money | $13.0B | 63% of the cost |
5 years under the buyer
| Year | Revenue | EBITDA | Interest | Free cash flow | Debt left |
|---|---|---|---|---|---|
| Year 1 | $4.7B | $1.5B | $593M | −$303M | $8.0B |
| Year 2 | $4.8B | $1.5B | $616M | −$316M | $8.4B |
| Year 3 | $4.9B | $1.5B | $640M | −$330M | $8.7B |
| Year 4 | $5.1B | $1.6B | $665M | −$344M | $9.0B |
| Year 5 | $5.3B | $1.6B | $691M | −$358M | $9.4B |
The exit and the buyer's return
| Exit | Amount | |
|---|---|---|
| Exit multiple | 11.1× EBITDA | today's trading multiple, before any premium |
| Enterprise value at exit | $18.1B | |
| − Debt left | $9.4B | |
| = Buyer's equity | $8.7B | |
| Money multiple | 0.67× | on $13.0B put in |
| Buyer's yearly return (IRR) | −7.7% |
Price against return
What the buyer makes at other premiums over today's $54.65; the IRR reaches 20% at $37.22 a share.
| Premium | Price a share | Buyer's IRR |
|---|---|---|
| 10% | $60.12 | −2.3% |
| 20% | $65.58 | −5.2% |
| 30% | $71.05 | −7.7% |
| 40% | $76.51 | −9.8% |
| 50% | $81.97 | −11.6% |
The figures used
| Figure | Amount | |
|---|---|---|
| Revenue, last 12 months | $4.5B | |
| EBITDA, last 12 months | $1.4B | 31.1% of revenue |
| Depreciation and amortization | $342M | |
| Capital spending | $972M | |
| Debt | $0 | |
| Cash | $0 | |
| Share price | $54.65 | on Oct 30, 2026 |
Fixed rules, the same as the interactive view's starting point: the shares are bought at today's price plus 30%, the company's debt is refinanced and fees take 2%. New debt is the least of 5.5× EBITDA, 65% of the price and the amount whose interest EBITDA covers 2 times, at 7.65% a year (SOFR 3.89% plus the high-yield B spread 3.26% plus 0.5%, rates of Oct 15, 2026). Revenue grows 3.0% in the first year — the company's own rate, held between −3% and +8% — fading to 3% by year 5; the EBITDA margin, depreciation and capital spending stay at today's share of revenue; working capital takes 10% of each year's added revenue; tax is 29% of profit after interest. Every dollar of free cash flow repays debt. After 5 years the buyer sells at today's multiple of EBITDA.
What a takeover could cost
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Chemical & Mining Co of Chile would cost about $72.41 a share, $20.7B for all its shares.
| Premium | % | Price a share | All shares |
|---|---|---|---|
| Low end (a quarter of deals paid less) | 20% | $65.58 | $18.7B |
| Median | 32.5% | $72.41 | $20.7B |
| High end (a quarter paid more) | 51.8% | $82.96 | $23.7B |
Chemical & Mining Co of Chile's latest quarter
Chemical & Mining Co of Chile, FY2025: revenue $4.6B (+1% year over year), operating margin 23.2%, net earnings $588M, operating cash flow $1.3B. The chart follows the revenue to costs, profit and cash.
Questions
Is Chemical & Mining Co of Chile being acquired?
No headline, 8-K or 13D about a sale is on file in the last year.
Could private equity buy Chemical & Mining Co of Chile?
A leveraged buyout at today's price plus 30% ($71.05 a share) would return a loss of about 8% a year to a private-equity buyer over 5 years; the most a buyer could pay for a 20% return is $37.22 a share (−32% against today's $54.65).
What would a takeover of Chemical & Mining Co of Chile cost?
Takeovers on record paid a median premium of 32.5% over the share price before the deal (the middle half 20% to 51.8%), according to the 1,437 merger proxies and tender-offer responses on EDGAR that state a premium. At the median, Chemical & Mining Co of Chile would cost about $72.41 a share, $20.7B for all its shares.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.