BASF Mulls Acquisition Of W.R. Grace - Report
Wednesday, July 30, 2008
BASF SE is looking into buying its U.S. rival W.R. Grace & Co. or other chemical companies as an exodus of private-equity firms from the acquisitions markets drags down takeover prices, Financial Times Deutschland said, citing sources in BASF's middle management and in the industry.
The German chemical maker has also assessed U.S. specialty chemicals maker Rockwood Holdings Inc. and German peer Cognis GmbH for potential tie-ups, the paper cited the sources as saying.
Earlier this year, second-tier BASF managers also discussed taking over Linde AG., the world's largest supplier of industrial gases, but the project was shelved, two people familiar with the matter told Financial Times Deutschland.
A BASF spokesman declined to comment on the report, saying only that BASF is permanently screening the market for acquisitions, according to the newspaper.
The spokesman also said takeover targets have to meet six criteria, namely above-market growth, sound finances, low cyclicality, innovative strength, offering unique value to customers and potential for synergies.
Source: AFX News Limited
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