DARMSTADT (dpa-AFX) - Darmstadt-based Merck Group is negotiating with Chinese dyes manufacturer Global New Material International to sell its color pigments business, according to circles. The Hong Kong-listed company has made a binding offer, the Bloomberg news agency reported Thursday, citing informed people. According to the information, a valuation of around one billion euros is on the table. A Merck spokeswoman would not comment on the rumors when asked by dpa-AFX. After a weak start, the shares recently cost 1.2 percent more than the previous day in a somewhat weaker market.

The Chinese group produces pearlescent pigments under the brand name "Chesir", which, similar to Merck's color pigments, are used among other things for cosmetics and automotive paints. Wirtschaftswoche" had already reported in spring that the Merck Group had invited potential buyers to bid for the business. According to Bloomberg, talks with the Chinese group are ongoing, but a successful conclusion of the sale is not yet certain. The talks were ongoing, and there were also other interested parties, the report added.

The comparatively small pigments business was already temporarily up for disposal under former Merck CEO Stefan Oschmann a few years ago, when it ran weaker due to a lull in demand. In addition, Merck has now focused its materials division on semiconductor supply, for which the Group also acquired U.S.-based Versum Materials in 2019. Last year, the pigments business, which Merck manages as "Surface Solutions," contributed just under EUR 440 million to the group's sales of EUR 22.2 billion./tav/jha/