30 July, 2008 - Chemical group Cognis is being examined as a possible acquisition target by BASF, according to German sources.
Reports in the German financial press have said BASF is scrutinising Cognis, which is a supplier of innovative specialty chemicals and nutritional ingredients, as one of three companies it is considering taking over. The other two firms said to be targets are US rivals WR Grace and Rockwood.
It is understood that all three possible targets have been assigned project names within BASF – a sign that takeover is a real possibility, the reports stated.
According to sources earlier this year, Cognis’ owners were gearing up to sell off the firm, which would have a price tag of around EUR 3 billion
BASF's chief executive Juergen Hambrecht said earlier this month that consolidation in the sector will accelerate, driven by cost pressures, lower asset prices and financial investor problems.
But a BASF spokesman this week said it would not comment on individual companies but that it continued to look at potential investments as part of its strategy.