Germany's Brenntag in takeover talks with U.S. rival Univar (updated)

Univar Solutions

25/11/2022 23:02

(Adds detail, background)
       Nov 25 (Reuters) - Brenntag SE  BNRGn.DE  said on Friday
it held preliminary discussions with U.S. rival Univar Solutions
Inc  UNVR.N  regarding a potential acquisition, as German
chemicals distributor seeks to expand its footprint in the
United States.
    The move comes after Brenntag's top boss earlier this month
said the company is eyeing the North American market with more
interest and plans to double annual spending in mergers and
acquisitions.
    Chief Executive Officer Christian Kohlpaintner had said back
then that the North American market was "more robust than a lot
of people think" and could have a competitive advantage over the
energy crisis-stricken European market, without giving
specifics.
    In a statement on Friday, Brenntag said that the discussions
were ongoing and that it was not foreseeable whether there will
be any kind of transaction. 
    Brenntag earlier said in a statement it plans to double its
annual spending for mergers and acquisitions to 400 million to
500 million euros ($401 million to $502 million) as part of a
strategic growth plan.
        Surging gas prices have severely hit German chemical
producers this year. A plunge in Russian gas exports after
Russia's invasion of Ukraine has sparked a continent-wide energy
crisis, leading to soaring energy prices.
 (Reporting by Akriti Sharma in Bengaluru; Additional reporting
by Jose Joseph; Editing by Lisa Shumaker)
 ((Akriti.Sharma@thomsonreuters.com;))