German chemical giant Henkel AG & Co. KGAA (HENKY.US) is currently engaged in negotiations with French investment firm Wendel, aiming to acquire Dutch specialty chemicals manufacturer Stahl Holdings. In a regulatory filing submitted on Monday, Henkel indicated that there is no certainty an agreement will be reached or that the transaction will be finalized. Any potential deal would require approval from Henkel's governing bodies, as well as the necessary regulatory clearances. Wendel separately confirmed that it is holding non-exclusive talks with Henkel. According to a Bloomberg News report from November 2024, Wendel was at that time considering a sale of Stahl, with a potential valuation for the deal reaching up to €2 billion. Sources familiar with the matter had previously disclosed that Wendel had engaged advisors from J.P. Morgan and Morgan Stanley for this potential divestiture. Wendel, together with Carlyle Group, originally acquired Stahl in 2006 for €520 million. Information on Wendel's official website shows that the Dutch company underwent a debt restructuring in 2010, and Wendel currently holds a 68% stake. Stahl has grown through a series of acquisitions, including purchasing the leather chemicals business of BASF and a similar business from Swiss company Clariant. In November 2024, Stahl agreed to sell its wet-end leather chemicals business to Syntagma Capital, a move intended to transform it into a pure-play specialty coatings manufacturer focused on flexible materials. Headquartered in Düsseldorf, Henkel produces industrial, commercial, and consumer chemical products, with a majority of its shares held by the Henkel family. Stahl primarily manufactures coatings and surface treatment chemicals used on materials ranging from leather for handbags to automotive seats.