EU asks BASF to offload some business to comply with competition concerns - a good deal for BASF
The European Comission has concluded its look at the acquisition of Ciba by BASF and ruled that there are concerns in a number of market segments:
- DMA3 (dimethylaminoethyl acrylate - a chemical intermediate)
- Synthetic dry strength resins (used in the paper industry)
- Bismuth vanadate (a pigment)
- Indanthrone blue (a pigment)
- Styrene acrylic (used as a glue for paper applications) - BASF will, of course remain a dominant producer of styre acrylate emulsion polymers
- HALS - hindered amine light stabilisers (used in plastics)
- UV filters for skin care products
To resolve the competition concerns, BASF and the EU have agreed that the following will be divested:
- BASF's DMA3 production assets in Ludwigshafen, Germany
- Ciba's entire EEA (Ethylene ethyl acrylate) synthetic dry strength agent business
- Ciba's global bismuth vanadate business
- Transfer Ciba's ' know-how of the finishing line', all supply contracts acustomer lists and inventories for the indanthrone blue
- Ciba's styrene acrylate business (and polyvinyl acetate, acrylic acid or acrylate) in the European Economic Area at Kaipianen, Finland
- HALS - Ciba's entire 'Chimassorb 119 FL' business, including the Chimassorb 119 FL production assets, releveant know-how and customer lists
- UV filters - BASF will conclude a UV Filter Licence Agreement, giving third party access to the technology behind Tinosorb S
This list of divestments is very light and a great deal for BASF who will continue to increase their dominance in a number of market segments - especially paper chemicals. It raises the question as to whether this type of deal would have been allowed if the current poor economic environment had not existed. In the last 6 months there have been a number of attempts to protect industries in Europe and past competition rules seem to have been relaxed.
No comments:
Post a Comment