Bayer considers sale of plastics business

Bayer AG is considering the sale of its plastics business in order to focus on the life-sciences industry, according to a report from news agency, Bloomberg.

The MaterialScience business has reportedly received interest from chemicals giant, Evonik, however, Bloomberg reports that those with knowledge of the discussions between the companies say the “talks are private” and thus far “no decision has been made.”

Earlier this month, Evonik’s Chief Financial Officer told a German newspaper that the company is ready to make acquisitions, including larger companies, “if they fit”.

According to industry analysts at Kepler Cheuvreux, the sale of Bayer’s MaterialScience unit could potentially fetch up to €7.8 billion.

There has been reported speculation in the industry for some time that Martin Dekkers, CEO of Bayer AG, might sell the plastics business in order to expand in healthcare and broaden its drug and life-science offerings.

So far, representatives from both Bayer and Evonik have declined to comment.