Bayer floats plastics unit
September 18, 2014
German chemical and pharmaceutical giant Bayer said on Thursday it intends to float its plastics division.
The company added the move leaves it free to position itself as a global leader in human, animal and plant health. Its share price rose 5 percent on the news.
Bayer's two other big units are HealthCare, which covers animal care and pharmaceuticals, and CropScience, which answers agricultural needs such as pest control and seed stocks.
Restructuring pays dividends for the future
Bayer has restructured its plastics division, known as MaterialScience, to equip it to deal with increased Asian competition. Its first-quarter results showed the fastest profit growth of all Bayer divisions.
The MaterialScience polymer unit operates four major plants in Germany. Its products include raw materials for polyurethane foams, high-performance plastic polycarbonate and precursors for paints, coatings, adhesives and sealants. In 2013, sales came in at 11 billion euros ($14 billion), out of a Bayer AG group total of 40 billion euros.
The decision to float MaterialScience was taken at the beginning of September and is subject to supervisory board approval, which is expected Thursday. The Wall Street Journal estimated the division's worth at $10 billion.
bew/cjc (Reuters, dpa, Bayer AG)