BASF considering rival bid for DuPont, reports claim

BASF is considering making a counterbid for DuPont, following the announcement of its merger with Dow Chemical in December, published reports suggest.

Both the Financial Times and Bloomberg claim that the German chemicals giant had been exploring the options of making an offer for DuPont last year before the US-based company announced its intentions to merge with Dow.

They write, however, that “according to people familiar with the matter” the chances of Ludwigshafen-based BASF proceeding with a counter offer are “low”, owing in part to comments made by the Group’s Chief Executive that it took “a very sober view” of acquisitions during its 2015 trading results.

“A a definitive leap forward​”

The Dow Chemical Company and DuPont made official the announcement that they are to combine in an official statement on December 11, 2015.

The new company, set to be called DowDuPont, will split into three independent, publicly traded companies in the areas of agriculture, materials science and speciality products. 

Upon closing of the transaction, the combined company would have a combined market capitalisation of approximately $130 billion at announcement.

The merger transaction is expected to close in the second half of 2016, subject to the necessary approvals.

The subsequent separation of DowDuPont, which the companies intend to pursue, would be expected to occur 18-24 months following the closing of the merger.

Commenting at the time, Edward D. Breen, Chairman and Chief Executive Officer of DuPont, described the merger as “a definitive leap forward on our path to higher growth and higher value.”

Andrew N. Liveris, Dow's Chairman and Chief Executive Officer, said that the transaction is “a game-changer for our industry” and that it reflected “the culmination of a vision we have had for more than a decade to bring together these two powerful innovation and material science leaders.”

Should either DuPont or Dow walk away from the merger, they would have to pay a reported $1.9bn (approx. £1.34bn GBP) break-up fee.