LANXESS Aktiengesellschaft (XTRA:LXS) (Lanxess AG) has joined hands with Advent International Corporation to make an offer for the engineering plastics business of Koninklijke DSM N.V. (ENXTAM:DSM) (Royal DSM NV), business daily Handelsblatt said on January 28, 2022, citing sources familiar with the matter. The Cologne-based company is hiving off its own materials operations into a separate company called HPM which should be combined with DSM's business and turned into a platform for more acquisitions in the area, the report says. Both businesses focus on the production of high-performance plastics which are used for the construction of electric vehicles and batteries.

DSM Engineering Plastics Inc.'s value is estimated at about €3 billion ($3.34 billion) which by far exceeds HPM's value, according to the sources. The Dutch company is considering selling the business, together with its protective materials operations, in a push to focus on its health, nutrition and bioscience activities.