Bayer is mulling a plan to sell its plastics business in order to focus on its health business, according to reports.
News agency Bloomberg quotes unnamed sources with knowledge of the matter who said the German chemicals giant was “exploring the sale” of the €7.5bn (£6.2bn) Bayer MaterialScience (BMS) business.
A Germany-based spokesman for BMS declined to confirm or deny the reports. "As a matter of principal we do not comment on market speculation," he told PRW.
The report of a possible sale came as Bayer announced a 79% rise in adjusted core profits at its BMS division during the first quarter to €366m (£301m).
Total group sales for the quarter totalled rose 2.8% to €10.6bn (£8.7bn), with earnings before interest, tax, depreciation and amortisation (Ebitda) up 11.6% at €2.74bn (£2.3bn).
Insiders told the agency any disposal of the plastics operation would be a prolonged affair and would come at the same time as a move by Bayer to acquire businesses in the drug and life sciences area.
The Bloomberg report said Germany-based Evonik Industries had “showed potential interest several months ago” in the BMS business, but the deal did not materialise.
The story pegged a potential selling price for Bayer MaterialScience of €7.8bn (£6.4bn), including debt.
