Source: Bayer MaterialScience
According to Bloomberg, Bayer is considering a sale of its plastics division to focus on expanding its health business instead.
It is thought that the Bayer MaterialScience (BMS) business may fetch more than €7.8 billion (£6.4 billion). The sale of this plastics unit would take time to be achieved and would coincide with a push by Bayer to make acquisitions to broaden its drug and life-science offering.
It was reported that Evonik Industries AG (EVK) showed potential interest several months ago but the deal failed to turn into anything concrete.
Now would be a good time for Bayer to act, Odile Rundquist, a Geneva-based analyst for Helvea SA, told Bloomberg. Rising capacity use and dropping raw materials prices at the unit helped push first-quarter earnings above analyst estimates today.
“I think it would be a very good time, because now they are really getting some critical mass in pharma. I think if they were to buy something else in health care, it would be a good move.” Rundquist said.