BASF set to acquire Cognis for $4.1 bn: report

The German chemical giant BASF SE is close to acquire specialty chemicals company Cognis GmbH for at least $4.1 billion, says a media report.

BASF has a significant presence in India.

Attributing to people familiar with the matter, The Wall Street Journal reported that BASF SE is poised to buy Cognis GmbH for at least 3.3 billion euros ($4.1 billion).

The BASF deal is likely to be announced this week, though there was a chance it could still fall apart at the last minute, the report noted.

Closely held Cognis supplies raw materials to the pharmaceutical, food and beverage, and dietary-supplement market, as well as the cosmetics and cleaning-products industries.

A group including Goldman's private-equity arm and Permira bought the company from German consumer-products maker Henkel in a 2.5 billion euros leveraged buyout nine years ago.

Cognis had a profit of 25 million euros in 2009 on sales of 2.58 billion euros, while BASF had sales of 50.7 billion euros last year from producing products including chemicals, plastics, oil and gas.