|Germany's Lanxess interested in Degussa - paper |
Wed Jun 21, 2006 7:47pm ET
FRANKFURT, June 21 (Reuters) - German chemicals group Lanxess has signaled interest in rival specialty chemicals group Degussa, Rheinische Post reported.
The newspaper quoted government sources as saying that Lanxess had approached state government in Duesseldorf, where Degussa is based, to seek political support.
German mining and industrial group RAG [RUHR.UL] controls Degussa and plans to delist the company from the stock exchange.
Responding to the report, a Lanxess spokesman said: "As a globally operating chemical group with growth potential, Lanxess is getting itself ready to sound out cooperation possibility."
He said it was too early for fundamental decision, adding that the firm was keeping regular contacts with the state and federal governments to follow chemical industry development.
Lanxess' Chief Executive Axel Heitmann said last month that the company would focus on strategic growth and look out for acquisitions potential after a period of restructuring.
Lanxess, which produces chemicals ranging from disinfectants to pigments that colour plastics, was itself spun off from Bayer last year.
RAG plans its own initial public offering in 2007. (Additional reporting by Frank Siebelt; editing by Carol Bishopric)
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