CSM Discussing Takeover of Glucona's Activities

DIEMEN, The Netherlands--CSM nv, based here, is holding discussions with Vandeem, Netherlands-based AVEBE to take over the gluconic acid derivatives activities of AVEBE's subsidiary, Glucona. According to CSM, Glucona--with production facilities in Ter Apelkanaal, the Netherlands, and Janesville, Wis.--has an annual turnover of approximately 30 million euros (US$28.3 million).

CSM (www.csm.nl) reported that this potential acquisition would be an important addition to its CSM Biochemicals Division, operating under the name PURAC (www.purac.com). PURAC currently produces lactic acid and lactic acid derivatives in The Netherlands, Spain, Brazil and the United States.

CSM reported in its release that it and AVEBE expect the negotiations to take several months. A CSM spokesperson told INSIDER that this business move would make PURAC the largest player in the higher gluconic acid derivatives market.

Calls to the Princeton, N.J., AVEBE sales office were not returned by press time.