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M&As: OMV in bidding process to acquire DSM Engineering

M&As: OMV in bidding process to acquire DSM Engineering

Austrian oil/gas firm OMV has joined the running for control of Dutch firm DSM’s thermoplastics division. The company said it is participating in the second phase of the competitive bidding process for the acquisition of 100% of DSM’s Engineering Materials business, which is reportedly valued at EUR3 billion.

The bidding process involves several bidders such as US industrial conglomerate Koch Industries Inc. and German chemicals group Lanxess that has teamed up with private equity house Advent International to bid for the business, and buyout firm SK Capital has also made an offer.

OMV added that the potential transaction would allow OMV to expand its chemical portfolio beyond polyolefins.

OMV said any deal would be subject to negotiations on commercial terms as well as successful completion of due diligence.

It added, “In particular, the Supervisory Board of OMV has not yet deliberated on the potential transaction and a potential decision by it thereon is currently not foreseeable. A respective decision is expected to be taken as soon as possible.”

DSM’s move to sell Engineering Materials, which produces thermoplastics used in industries ranging from automotive to construction, is part of the Netherlands-based company’s strategic focus on its health and nutrition businesses.

Last year, DSM outlined plans to reorganiSe into three new groups: food and beverage; health, nutrition and care; and animal nutrition and health. It also said it would review options for its materials operations, including changes of ownership.

In April, DSM announced the sale of its smaller Protective Materials business to polymer company Avient Corporation for EUR1.3 billion.


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