Dutch chemicals company AkzoNobel NV is in talks with multiple parties over the potential sale of its specialty chemicals business, the company has confirmed to Plastics News Europe.
The negotiations are part of the group's strategy, announced in April, to separate its specialty chemicals operations as a new entity and focus on its paints and coatings business with “fit-for-purpose” structure and processes.
According to AkzoNobel's senior spokesman Andrew Wood, the company is following a dual-track process for the spinoff: private sale or legal demerger.
In terms of private sales, said Wood, a number of strategic buyers as well as private equity funds have expressed their interest.
These, according to the German business newspaper Handelsblatt, include a joint bid by German specialty chemical supplier Lanxess AG and U.S. private equity firm Apollo.
While AkzoNobel did not comment on the price tag, Trading Sat suggested an 8 to 10 billion euro ($9.6 to 12.02 billion) price range for the unit, which had 4.8 billion euros ($5.7 billion) in sales in 2016.
The business makes ingredients for products including plastics, detergents and pharmaceuticals.
AkzoNobel announced its strategy last year amid a 24.6 billion euro ($29.5 billion) takeover bid by the U.S.-based PPG Industries Inc. At the time, the Dutch company said it would complete the separation process in 12 months.
According to Wood, the company is on track to complete the process by April 2018.