Germany's BASF has moved closer to winning its bid for rival Engelhard after the US chemicals company's board recommended the offer last night. If successful, the deal would be the largest acquisition of a US target by a German company in 10 years.

Engelhard's board unanimously recommended the $5.6bn (€4.5bn) offer, or $5bn without debt, which is the sixth largest transatlantic M&A deal from Germany.