Bayer AG is mulling a plan to sell its plastics business, a major global supplier of polycarbonate, polyurethane and specialty plastics, according to a report from the Bloomberg news service.
The report, which quotes unnamed sources with knowledge of the matter, said Bayer “is exploring the sale” of the $10 billion Bayer MaterialScience business. If the Leverkusen, Germany, company proceeds with the plan, it would focus instead on its health business.
The Bloomberg report said Essen, Germany-based Evonik Industries AG “showed potential interest several months ago” in the Bayer MaterialScience business. But that deal fizzled, according to the report.
The story pegged a potential selling price for Bayer MaterialScience of 7.8 billion euros ($10.8 billion).
A Germany-based spokesman for Bayer MaterialScience declined to confirm or deny the reports. "As a matter of principal we do not comment on market speculation," he said.
The report of a possible sale came as Bayer announced a 79 percent rise in adjusted core profits at its BMS division during the first quarter to 366 million euros ($507.4 million).
Bayer reported total corporate sales for the quarter rose 2.8 percent to 10.6 billion euros ($14.7 billion), with earnings before interest, tax, depreciation and amortisation (Ebitda) up 11.6 percent at 2.74 billion euros ($3.8 billion).
Sister publication PRW contributed to this report.