BASF invites final private equity bids for construction chems unit - sources

By Arno Schuetze and Patricia Weiss FRANKFURT - German chemicals group BASF has asked the two remaining private-equity suitors of its 3 billion euro (£2.6 billion) construction chemicals unit for final bids by Friday, three people close to the matter said. A consortium comprising buyout groups Cinven and Bain is expected to table an offer, as is rival investor Lone Star, which is bidding alone, the three people said on Thursday

Reuters November 08, 2019 00:07:47 IST
BASF invites final private equity bids for construction chems unit - sources

BASF invites final private equity bids for construction chems unit  sources

By Arno Schuetze and Patricia Weiss

FRANKFURT - German chemicals group BASF has asked the two remaining private-equity suitors of its 3 billion euro (£2.6 billion) construction chemicals unit for final bids by Friday, three people close to the matter said.

A consortium comprising buyout groups Cinven and Bain is expected to table an offer, as is rival investor Lone Star, which is bidding alone, the three people said on Thursday.

The sale has been long and drawn out as BASF put the construction chemicals business on the block a year ago to focus on more profitable operations.

The company declined to comment on Thursday. Cinven and Lone Star also would not comment, while Bain had no immediate comment.

BASF's CEO Martin Brudermueller said last month he expects the signing of a deal before the end of the year.

"We received confirmatory bids and are now progressing with a smaller number of interested parties," he said at the time.

The chemicals giant had initially hoped to sell the unit to the world's largest cement maker LafargeHolcim , but was unable to hammer out a deal.

Cinven owns smaller French peer Chryso and aims to fold the business into the BASF unit, if its bid prevails, the sources said.

Bain owns British building materials distributor MKM, while Lone Star has German building materials maker Xella in its portfolio.

Lone Star had previously walked away from the bidding but was invited back to the negotiating table. Still, the Cinven-Bain consortium is seen as the frontrunner in the final round, the sources said.

BASF's construction chemicals unit is the world's largest maker of additives for concrete. It also offers a range of substances including concrete repair fillers, grouts and sealants under a business dubbed Construction Systems, where BASF is the No. 4 player globally.

Analysts have said that BASF never managed to reconcile the construction chemicals unit's dependence on small to mid-size builders with BASF's focus on large industrial customers.

BASF purchased the construction chemicals business - which competes with Standard Industries, GCP Applied Technologies , Mapei, RPM Inc and Sika - from Degussa in 2006 for 2.7 billion euros including debt.

(Additional reporting by Joshua Franklin in New York; Writing by Ludwig Burger; Editing by Susan Fenton)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Turkey's daily COVID-19 deaths hit a record high of 141 - ministry
World

Turkey's daily COVID-19 deaths hit a record high of 141 - ministry

ANKARA (Reuters) - Turkey's daily death toll from the coronavirus hit a record high of 141 on Friday, according to data from the Health Ministry, as the country braced for nationwide measures amid a surge in cases in recent weeks. The data showed 5,103 new COVID-19 patients were recorded in the country, while the overall death toll rose to 12,084. Since July, Ankara has only reported symptomatic COVID-19 patients, a move critics say hides the true scale of the outbreak.

Gunman releases all hostages in Georgian capital Tbilisi - police
World

Gunman releases all hostages in Georgian capital Tbilisi - police

TBILISI (Reuters) - A gunman has released unharmed all nine hostages he had taken at a microfinance organisation in the Georgian capital Tbilisi on Friday, police said. According to preliminary information, the gunman was not demanding a ransom but had some social demands, including lower prices for medicines

With applause and flowers, thousands attend funeral of Belarusian protester
World

With applause and flowers, thousands attend funeral of Belarusian protester

By Matthias Williams KYIV (Reuters) - Thousands of people silently raised their arms in the air, held flowers aloft and broke into chants outside a church in Minsk on Friday at the funeral of a Belarusian protester. The death of 31-year-old Roman Bondarenko has become a flashpoint in months-long mass protests against President Alexander Lukashenko. Witnesses said Bondarenko was detained after a scuffle with people in plain clothes who came to a playground to remove red-and-white ribbons representing the protest movement