This would double our size in disposable plastics and increase our presence in the US market

This would double our size in disposable plastics and increase our presence in the US market.” He added that the group would consider a rights issue to fund the deal “We are always being told we should gear up or issue paper. Ohmeda, which was only put on the market yesterday by BOC, the industrial gases giant, last year had sales in excess of pounds 500m. Smiths Industries, the UK engineer, is planning a bid for BOC’s US inhaled gases and plastics business, Ohmeda, in a deal which could be worth as much as pounds 1bn. The new regulatory body, dubbed “super-SIB” will become one of the most powerful regulatory institutions in the UK, overseeing banks, securities firms as well as insurance and building societies.
Ms Liddell said in a parliamentary answer yesterday that the new arrangements would “further enhance the existing high standards of supervision and regulation of all financial sectors.”The Treasury said the Bank of England Bill, transferring regulation of the banking industry to the new SIB, would be introduced after the summer recess.A draft Financial Services Bill to transfer the responsibilities of the current self-regulatory organisations, supervision of insurance companies and of mutually-owned organisations will be published for consultation in the summer next year.There have been calls for further legislation in recent weeks to protect the remaining building societies from pressure from carpetbaggers..

The Government’s aim to create an enhanced Securities and Investments Board was taken a step further yesterday with the announcement that insurance regulation was being transferred to the Treasury. Helen Liddell, Economic Secretary, will assume responsibility for insurance regulation, which will eventually move to the SIB. According to one analyst: “BOC will have cash and with no real interests in Europe it won’t have a monopoly problem.”. However, she confirmed that a listing was unlikely this year.Sources close to BOC said that AGA was also a potential target as it had a presence in Germany, Latin America and the US. However, it is capitalised at pounds 2bn and so is a bigger mouthful.Though BOC might find itself bidding against gas groups like Linde of Germany and France’s Air Liquide, the world’s biggest industrial gas player, it could prove the keenest buyer. And though Messer is planning a flotation in Germany, tax problems may make the move unattractive.A Messer spokeswoman refused to comment on whether BOC had made an approach.

The group posted sales of DM2.47bn (pounds 823m) and DM330m profits in the year to January. Messer may also now contemplate a bid following the death, in May, of Dr Hans Messer, whose father founded the company, and who was known to oppose a sale.The group’s principal shareholder Hoechst, with a two-thirds stake, is known to be keen to shed Messer to focus on life sciences. Ohmeda, which represents around a tenth of BOC’s sales, has suffered badly from generic competition on its oldest gas, Forane.Possible acquisition targets for BOC could include Messer, Germany’s leading industrial gases business. However, sources suggest the group has targeted Abbott Laboratories, the US healthcare group, Zeneca and Smiths Industries from the UK, and the American chemicals group, Mallinckrodt as possible buyers. Other possible buyers include Baxter and Astra.Abbott, the leading contender, would not comment on its plans yesterday, but as the US’s second-leading surgical anaesthetic gas group, it would face anti-trust issues if it bought Ohmeda.