21 June 2010 11:10 [Source: ICIS news]
LONDON (ICIS news)--Chemical major BASF looks set to acquire specialty chemicals producer Cognis in a deal that could be worth as much as €3.3bn ($4.1bn) after Cognis rejected a bid from US-based Lubrizol over the weekend, according to media reports.
The group of private-equity funds that own of Cognis reportedly favoured BASF's bid because they regarded it as more likely to close and its funding as more secure than that of Lubrizol.
BASF had been granted preferred status during the bidding process, according to the reports.
Cognis declined to comment on any details of the potential deal.
On 10 June, ICIS reported that BASF had agreed a deal in principle with Goldman Sachs and private-equity firm Permira, advisers to Cognis’ private-equity owners, to acquire Cognis for close to €3.1bn.
If the deal were to go through, BASF's acquisition of Cognis would be its largest takeover since it bought specialty chemicals major Ciba last year for around €3.9bn.
Cognis is a supplier of specialty chemicals and nutritional ingredients, with a particular focus on the food and healthcare markets and the cosmetics, detergents and cleaners industries.
($1 = €0.80)
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