BREAKING NEWS

BREAKING NEWS

BASF to launch construction chemicals unit sale in spring - sources

BASF to launch construction chemicals unit sale in spring - sources
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Christian Hartmann(Reuters)
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FRANKFURT (Reuters) - BASF is launching the sale of its construction chemicals unit in spring as the chemicals group seeks to focus on more profitable businesses, people close to the matter said.

BASF said on Tuesday that it has hired Goldman Sachs to organise an auction or merger for the unit.

Goldman Sachs declined to comment.

The world's largest maker of chemical additives for concrete is expected to fetch roughly 3 billion euros (£2.6 billion), the sources said.

First information packages are expected to be sent out to prospective bidders in March, the sources said, while one of them added that first-round offers were likely to be due before the summer break.

The company's new Chief Executive Martin Brudermueller in October unveiled plans to hive off the unit as BASF looks for ways to boost the group's share price.

Switzerland's Sika, which is buying French construction chemicals company Parex from CVC Capital Partners, said last month it would be interested in the BASF unit but doubted a deal for all of the business was possible because of antitrust restrictions.

Companies such as LafargeHolcim, Saint Gobain, GCP, RPM and Mapei are also seen as potential suitors for all or parts of the business, as well as buyout groups such as Advent, Carlyle or CVC.

(Reporting by Arno Schuetze and Patricia Weiss; Editing by Ludwig Burger)

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