Proposed deal seen as historic opportunity.

Lanxess chairman Axel Heitmann has proposed a take-over of chemicals and polymers group Degussa by the Bayer spin-off company saying, “the two companies are an ideal fit and have few overlaps.” Speaking on the company’s first quarter results presentation yesterday, Heitmann went on: “Let me assure you that Lanxess could finance this acquisition. And contrary to some reports we could even do it without private equity capital.” The proposal, which has been the subject of recent speculation in Germany, would represent what Heitmann called “an historic opportunity for Germany as a chemical industry location.” It would not involve any operational job losses, he added.

The €11bn Degussa concern is part of coal, chemicals and property RAG conglomerate and includes a €400m engineering polymer business, covering PA 12 and a growing PEEK presence, as well as an €800m PMMA business. Last week, an RAG spokesman said that the group had no plans to sell Degussa.

Lanxess enjoyed a 7% rise in EBITDA pre exceptionals to €219m in the first quarter on sales of €1.7bn, down by 7% from the previous year because of portfolio changes and exchange rate factors, he said.