This would have to raise a couple of questions at least?
Why are BASF Mortars selling?
The division makes products including grouts, mortars and admixtures, which are added before or after mixing cement to enhance
properties like drying times and water content.
Can they see the competition coming?
More to the point maybe is why would Lafarge Holcim be interested? can they see another bolt on acquisitions being something that may transform the old BASF Mortars stuff with an inbuilt market ready to tap? otherwise why buy it?
Do they have another company in mind with similar synergies only better?
https://www.bloomberg.com/news/arti...-said-to-join-race-for-basf-construction-unitdeals
LafargeHolcim Is Said to Join Race for BASF Mortars UnitBy
Kiel Porter,
Aaron Kirchfeld, and
Sarah SyedJuly 1, 2019, 4:49 AM GMT+10 Updated on July 1, 2019, 5:13 PM GMT+10
- Cement maker competes with buyout firms for $3.4 billion unit
- CEO Jenisch seeking to diversify away from traditional cement
Shipping containers sit stacked at the Port of Mannheim as the BASF SE headquarters chemical plant stands beyond, in Mannheim, Germany.
Photographer: Alex Kraus/Bloomberg
LISTEN TO ARTICLELafargeHolcim Ltd. has joined the bidding for
BASF SE’s construction chemicals business, according to people familiar with the matter,
as Chief Executive Officer Jan Jenisch seeks to diversify Europe’s largest cement maker.The Swiss company is competing with several buyout firms, including Bain Capital and
Cinven, that were chosen to proceed to the second round of bidding, the people said. Building-materials maker
Standard Industries Inc., which has partnered with Blackstone Group LP, was also shortlisted, the people said, asking not to be identified because the information is private.
The latest round of offers could value the division at more than 3 billion euros ($3.4 billion), the people said. Advent International, KKR & Co. and Lone Star Funds have separately been considering a purchase of the BASF unit, the people said. Other companies with existing construction chemicals operations have also shown interest, one of the people said.
Shares of Ludwigshafen, Germany-based BASF gained 2.1% to 65.29 euros at 9:09 a.m. in Frankfurt. LafargeHolcim climbed 2% to 48.62 francs in Zurich.
BASF announced a
strategic review of the construction chemicals business in October.
The division makes products including grouts, mortars and admixtures, which are added before or after mixing cement to enhance properties like drying times and water content.
LafargeHolcim CEO Jenisch said in May he’s eyeing at least 10 bolt-on assets purchases for 2019 and is confident of reaching the upper end of sales guidance as his revamp of the company starts to take hold. A purchase of the BASF unit would mark a return to an area he knows well from his time at the helm of Swiss building-materials maker Sika AG.
No final decisions have been made, and there’s no certainty the suitors will proceed with binding offers for the business, the people said.
Representatives for Advent, Bain, BASF, Blackstone, Cinven, KKR, LafargeHolcim, Lone Star and Standard Industries declined to comment.
https://www.bloomberg.com/news/arti...s-decides-against-offer-for-basf-mortars-unitStandard Industries Decides Against Bid for BASF Mortars ArmBy
Aaron Kirchfeld,
Myriam Balezou, and
Dinesh NairSeptember 10, 2019, 11:25 PM GMT+10 Updated on September 11, 2019, 3:56 AM GMT+10
- LafargeHolcim, Cinven, Lone Star are still in the running
- Some suitors frustrated by lack of detailed financial info
U.S. building-materials maker
Standard Industries Inc. decided against submitting an offer for
BASF SE’s construction-chemicals unit,
leaving LafargeHolcim Ltd. as the sole strategic bidder competing with buyout firms to acquire the business.“Standard Industries has actively chosen not to submit a bid in this round,” the company said in a statement Tuesday in response to Bloomberg queries. The company was among suitors shortlisted by BASF to proceed to the latest round of bidding for the asset, Bloomberg News reported earlier.
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