Air Products & Chemical Inc. expected to sell its performance material business to Evonik Industries.

United States: US based industrial gas producer Air Products and Chemicals is in advance talks to sell its performance materials business to the Germany based specialty chemicals manufacturers. This deal would be valued at around USD3.5 billion which would be expected to take place by the end of March 2016. In 2015, Air Products also planned to split into two publically traded companies including material technologies and industrial gases. However, the material technologies business also comprising of electronic materials business along with performance material business will not be a part of this deal. The electronic materials business will be sold separately.    

TechSci depicts this acquisition would be one of the largest activity in the Evonik’s history. This would further strengthen the market position of Evonik in the specialty chemicals as well as performance materials business by increasing the size of the company as well as its margins.

According to TechSci Research report “GCC Construction Chemicals Market By Type, By End User, Competition Forecast & Opportunities, 2011 – 2021”, construction chemicals market in the GCC region is projected to grow at a CAGR of over 7% during 2016 to 2021, due to rising government spending on construction projects coupled with increasing participation by private players in the real estate sector. Additionally, growing demand for modern residential complexes and commercial structures is expected to drive demand for construction chemicals in the GCC countries through 2021.