Laporte courts PPG
15 Jan 2000
Clariant of Switzerland will not be buying UK speciality company Laporte because of Clariant's difficulty securing approval from Hoechst which holds 45 per cent of Clariant.
This is Clariant's second merger collapse after talks failed in December with fellow Swiss company Ciba.
A Clariant/Laporte merger could complicate Hoechst's merger with Rhone-Poulenc to form Aventis and may have pressured Clariant into dropping the take-over bid. Creating Aventis requires Hoechst to dispose of its industrial interests, including its stake in Clariant.
Without Hoechst, Clariant may also seek an acquisition rather than a merger. Clariant has announced that 23 candidates are on a list of possible acquisitions with around £1.8billion avilable to spend.
Speciality additives, pharma intermediates and producers of electronic chemicals are thought to be on Clariant's hit list.
The merger collapse leaves the way clear for other bidders for Laporte to come forward. Following last year's purchase of Inspec, Laporte has a market value of around £1.5billion, and in this climate of consolidation is thought to be a willing party to merger talks. PPG Industries, the US paints group which recently acquired an ICI coatings business, is believed to be interested.
