‘Billion dollar deal’ was not a phrase bandied about the food ingredients industry much last year. With BASF buying Cognis for €3.1bn and Corn Products International paying $1.3bn for National Starch, M&A looks to be thawing – but best not get over-excited...
Speculation about typical asset valuing ion the chemicals industry by Cognis’s chief financial officer, Marco Panichi, has led to a figure of €3.4bn being attached to the German ingredient company, as buy-out speculation mounts.
German chemicals and nutrients giant Cognis has turned in its best ever Q1 operating profit as sales across its three core divisions exceeded 2008 pre-financial crisis volumes in 2008 for the first time - fueling ongoing buy-out speculation.
BASF continues to be the subject of rumours that its supervisory board has approved a takeover bid for fellow German supplier, Cognis, which is owned by Permira PERM.UL and Goldman Sachs Capital Partners.
Cognis claims to have steered a steady course through last year’s economic upheaval. But despite a return to profitability, the downturn took its toll on nutrition and health and care ingredients sales.
Nestlé is tipped as a potential buyer of Novartis' nutritional
supplements unit, rumoured to be up for sale, as the Swiss food
group is aiming to strengthen its position in the health and
Cognis has refused to confirm reports in the German press that it
is in advanced discussions with three potential purchasers, but the
outcome of a strategic review will be made public before the end of