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Report: LafargeHolcim drops out of race for BASF unit

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Report: LafargeHolcim drops out of race for BASF unit

Switzerland-based LafargeHolcim Ltd. dropped out of the bidding race to acquire BASF SE's construction chemicals business due to concerns over the German company's valuation expectations, Bloomberg News reported, citing people familiar with the matter.

Uncertainties surrounding the execution time frame of the potential transaction also raised concerns about the possible impact on the business' performance and integration, according to the people.

LafargeHolcim was the last strategic bidder for BASF's construction chemicals unit after building products supplier Standard Industries Inc. decided against making an offer in September. Several other bidders, including private equity firm Bain Capital LP and Blackstone Group Inc., have also reportedly backed out of the race, with some worried about BASF's reluctance to disclose the unit's earnings.

BASF has not finalized whether to push ahead with the sale, the sources said, adding that bidders who have abandoned the auction could still reenter the process. The company reportedly expects to generate more than €3 billion from the potential sale.