Evonik shares heat up on deal speculation

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Shares in German chemicals group Evonik Industries jumped more than 6 per cent following a report that it is nearing a $3.5bn deal for several businesses belonging to US rival Air Products & Chemicals.

Shares in Evonik had started Friday down, dropping as low as €27.14, before reaching €28.85 shortly after the report was published by Bloomberg. The shares are currently up 2.7 per cent on the day at €28.67.

According to the report, Evonik is pursuing materials and additives divisions belonging to Air Products & Chemicals in what would be the German company’s biggest acquisition so far.

The Wall Street Journal reported in March that a deal for Air Products’ performance materials operations may be in the offing.

Elsewhere in the global chemicals sector, Air Liquide announced in November a $13.4bn deal for Airgas of the US, which would make the French company the world’s biggest supplier of industrial gases including oxygen, nitrogen and carbon dioxide.

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