02 June 2004 16:26 [Source: ICIS news]
FRANKFURT (CNI)--German energy and chemicals group RAG has acquired the 50.1% majority of speciality chemicals group Degussa through the purchase of shares worth Euro3.9 bn ($4.8bn) from compatriot energy group E.on.
This wrapped up the second phase of a two-phase deal finalised in early 2002 following months of controversy over the swap of RAG’s stake in natural gas provider Ruhrgas for the Degussa shares.
Degussa will now be consolidated by RAG and will account for about 50% of annual sales after the disposal of its other chemicals activities. ?xml:namespace>
To pay for the shares, Essen-based RAG drew on the Euro1.9bn proceeds from the Ruhrgas sale and a Euro2bn loan, which it plans to retire at the end of this year following the divestment of foreign coal mining interests and the plastics processing activities of existing chemicals subsidiary Rutgers.
E.on, meanwhile, has postponed from 2004 to 2005 plans to float part of its remaining 43% stake in Degussa. It said stock market conditions are still too volatile.
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