BASF In Advanced Talks To Buy Cognis

FRANKFURT (Reuters) – BASF (BASF.DE), the world’s largest chemical maker by sales, is in advanced talks to take over German additives supplier Cognis, three sources with knowledge of the matter told Reuters on Friday.

A bid could emerge by next week, one of the sources said.

Cognis’s owners Permira [PERM.UL] and Goldman Sachs Capital Partners (GS.N) have launched a campaign to sell the company outright even as it prepares to go public, sources have said. [ID:nLDE62E1S1]

U.S specialty chemicals maker Lubrizol (LZ.N) has joined other potential bidders in a deal that could value the target at around 3 billion euros ($4 billion), a source close to the matter told Reuters last month. [ID:nLDE63D0IR]

A spokeswoman for BASF declined to comment.

German business daily Financial Times Deutschland reported on Friday that BASF’s supervisory board has given the green light to bid for Cognis, citing people familiar with the matter.

(Reporting by Frank Siebelt, Alexander Huebner and Ludwig Burger; Editing by Michael Shields)