MEXICAN PLASTICS pipe maker Mexichem raised its offer for Dutch rival Wavin by 11 per cent to €505 million, winning the company’s support to start due diligence in January and pushing up its shares.

Europe’s biggest plastics pipe maker Wavin, which faces a stagnating European construction market and margin pressure, had previously resisted Mexichem’s overtures, saying the offer was too low.

Mexichem, a chemical group based near Mexico city that has grown through takeovers, has become a leading plastic pipe maker in Latin America and wants to become the world’s biggest by combining operations with Wavin.

It makes just four per cent of total sales in Europe.

Mexichem said in a statement yesterday it had raised its offer to €10 per share from €9 previously and had been given access to Wavin’s books, sending Wavin shares up as much as 19 per cent.

“While no agreement has been reached on the financial terms of a potential offer by Mexichem, good progress has been made on the non-financial terms and Wavin will grant Mexichem access to due diligence information,” Wavin said. – (Reuters)