DSM eyed as takeover target by Evonik - Newswire Round-up
Evonik Industries, a German chemical maker, is exploring the option of buying Royal DSM, a Dutch competitior, a newswire reported citing people familiar with the matter.
Evonik is in talks with advisers about the possibility of a deal, which if it were to go through would create a company with around EUR 22bn in sales, the Bloomberg report said.
At the beginning of this year, DSM would have rejected an offer by the Germans, due to fears about relocating to Germany and concerns about the corporate governance structure and strategic fit, the report added.
Evonik is interested in acquiring either all of DSM, with a market value of EUR 8.7bn or just part of the company. It is most interested in the nutrition division, the report added.
The chemical maker, Germany’s second largest, is looking for a large European target. Apart from DSM, it is also considering companies such as Croda International in the UK and Clariant in Switzerland, the report said.
Evonik's CFO Ute Wolf has said the company is ready to make 'sizeable acquisitions', as previously reported by this service.
Evonik denied the talks and a spokesman for DSM declined to comment, Bloomberg reported.
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