Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Lubrizol (LZ), a US-based chemicals company, has started negotiations to acquire Cognis, a supplier of specialty chemicals and nutritional ingredients.
Subscribe to our email newsletter
BASF SE is is said to be considered the leading potential bidder, reported Dow Jones Newswires quoting some sources familiar with the news.
According to Charles Cooley, CFO of Lubrizol, the company continues to look for ‘value adding’ acquisitions, backed by its strong balance sheet and liquidity. LZ’s acquisition of Cognis would be an important deal, since the chemical company reportedly acquired Noveon International for around $1.84bn in 2004.
The sources also said that Solvay, a Belgian company, which was rumored to be a possible bidder and DuPont, another North American chemicals company, are not involved in talks.
The negotiations with all potential bidders to sell specialty chemicals manufacturer, jointly owned by Goldman Sachs Group (GS) and private equity fund Permira Advisors, remain in an early stage as the company continues to consider an initial public offering in order to raise cash.
According to Bankhaus Lampe’s Heiko Feber, the speculated price tag for Cognis of more than EUR3bn looked accurate and would probably include EUR2.5bn in debt and EUR1bn for assets.