According to Bloomberg, insiders disclosed that AkzoNobel Netherlands has narrowed its list of bidders for its Specialty Chemicals business unit to four, with Germany Lanxess and Apollo Global, the US private-equity firm, Composed of teams among the best.
In addition, Carlyle Group, an investment company, a team of Advent International and Bain Capital, and Hal Investments BV, a Dutch investor, are on the list.
Although AkzoNobel does not currently make the ultimate choice for the sale or divestiture of this business, the market is generally expected to receive about 10 billion euros (about 11.99 billion US dollars).
Akzo Nobel has been under pressure since it rejected the $ 29 billion takeover bid from rival US-based PPG Industries in 2017 and has since moved to a lawsuit against radical investor Elliott. In the meantime, the company has a plan to spin off specialty chemicals business units, hoping to focus on the paint coatings business.
At present, some specialty chemicals businesses belong to the most profitable unit of AkzoNobel, which accounts for about 40% of the total adjusted operating profit of the company. Among them, those used in the commercial chlor-chemicals market and personal care products Many specialty products in the field, the company occupies a strong position in the world.
Satisfied with the first round of bidding
Sources said the first round of tender for the company's Specialty Chemicals business unit was submitted in late December 2017 and this week AkzoNobel notified candidates eligible for the next round of bidding after KKR The consortium with CVC Capital Partners also participated in the first round of bids, but is now out of business.
AkzoNobel spokesman Leslie McGibbon said on Tuesday that the outcome of the first round of quotations was very much to the satisfaction of the company and we are currently negotiating with the four bidders for the next round of quotations but on the dual course of the business unit Listed or packaged for sale) is still in progress.
Vanlancker said maintaining the sale and spin-off of the two options will help maintain 'intense competition' in the bidding process and if the quotes from the four bidders are too low, AkzoNobel could still abandon the sale option.
However, the market believes the option to abandon the sale is unlikely to be the top choice for Eliot's management and the latter has become one of AkzoNobel's biggest shareholders by overweight after failing to take legal action against Akzo Nobel's management.
PPG options
The analysis pointed out that if the project of AkzoNobel's spin-off specialty chemicals business unit landed, it would have an impact on the PPG - if it tried to restart the acquisition of AkzoNobel, because, if before the so-called 'validity of cross-compensation' passed Acquisition of Dutch counterparts, the U.S. company will face a tax outflow - which, according to informed sources, will amount to as much as 2.5 billion U.S. dollars.Any company in AkzoNobel who tries to acquire the Spin-off Specialty Chemicals business unit Will face this problem.
Although PPG said in November 2017 that it expects to implement more M & A projects in the paint business in the next 12 to 18 months, Chief Executive Officer Michael McGarry said Akzo Nobel is no longer his concern.
LANXESS real intentions
Matthias Zachert, chief executive of LANXESS, has been busy internalizing the company for years and has only recently begun to turn its attention to expansion.
In April 2017, Zachert acquired Chemtura, a leading global supplier of flame retardants and lubricant additives, for 2.4 billion euros. Although the merger and acquisition consolidation is still in progress, Zachert has made it clear that it will continue to participate in the chemical industry The reorganization.
At the EGM held on November 30 this year, the shareholders of AkzoNobel approved the separation of its specialty chemicals business as part of its strategy to create a focused and efficient business: the paint and coatings business and the specialty chemicals business .
The AkzoNobel Specialty Chemicals business unit is an attractive purchase target with a profit margin of 20% in 2016, EBITTA of 953 million euros and total revenue of 4.8 billion euros. The current transaction price of this industry is generally 10 to 12 times the EBITDA, so the project may be as high as 10 billion euros