OMV AG and Koch Industries Inc. have entered the bidding war for the thermoplastics division of Royal DSM NV, according to people familiar with the matter, according to Bloomberg news agency. The Austrian and US petrochemical companies are expected to submit bids for DSM’s Engineering Materials business in the next bidding round, the people said. The valuation could be more than 3 billion euros.
Chemicals group Lanxess AG is also in the running and has teamed up with private equity house Advent International to bid for the division, the people said. The buyout company SK Capital has also expressed an interest. Talks are ongoing and no final decisions have been made about a sale, said the people, who asked not to be identified. Representatives from Advent, DSM, Lanxess and OMV all declined to comment, while spokespersons for Koch and SK Capital were not immediately available for comment.
The sale of Engineering Materials, a manufacturer of thermoplastics used in the automotive and construction industries, is part of the Dutch company’s strategic refocus on the health and nutrition sectors. DSM is working with JPMorgan Chase & Co. and Centerview Partners to review its materials activities, Bloomberg News reported in October.