BASF Working On Weighing Counter Offer for DuPont

BASF SE is currently working with different advisers and banks determining the merits of a counter bid for DuPont Co, the chemical company worth $55 billion that had agreed to a merger with Dow Chemical back in December, said people familiar with the matter.

The chemical producer based in Germany has not made any decision as of yet about proceeding with a possible offer, said the same people, who requested anonymity as the information is private.

BASF has not made any formal approach to DuPont said the people. Shares at BASF were down by 1.7% in Monday morning trading in Frankfurt The stock has fallen 12% since the beginning of 2016.

BASF, the biggest chemicals business in the world, has been working with its advisers since late last year to look into a bid for DuPont, the people said.

It held some talks with the company, based in the U.S., prior to DuPont agreeing to merge with Dow the talks ceased at that time.

BASF thus far has missed on a wave of different consolidations within in this industry that has been focusing on products for crops such as seeds and pesticides.

This comes as years of low prices of commodities continue to eat away at farmer’s incomes.

Purchasing DuPont would give BASF a business that would be more profitable from enzymes to food ingredients as well as the second largest seeds producer such as corn that is genetically modified.

The largest seed company is Monsanto Co.

Kurt Bock the CEO as BASF said in an interview last month he had considered a deal in the agricultural chemicals field before making the decision to not buy anything.

DuPont and Dow in December made the announcement of the largest agricultural business in the world, with their merger as well as the second largest chemical business in the world.

Representatives of DuPont and BASF would not comment on any contact between the two companies. DuPont stock was up 5.3% in trading before the bell on Monday.

BASF, based in Germany, has a 59 billion euros or $64 million market value, while Dow is valued at $56 billion.

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