02 April 2009 21:56 [Source: ICIS news]
HOUSTON (ICIS news)--German chemical company BASF has agreed with the US Federal Trade Commission (FTC) to sell two pigment property rights in order to complete its acquisition of Switzerland’s Ciba Holding, the commission said on Thursday.
The FTC said the acquisition, as it was previously structured, would be anticompetitive by reducing competition in the global markets for two high-performance pigments. The FTC valued the deal at $5.1 bn (€3.9bn).
Under the terms, BASF must sell all assets related to the bismuth vanadate and indanthrone blue pigments to an FTC-approved buyer within six months.
“The commission’s action today preserves the competition that would have been lost with this transaction and ensures that consumers do not pay higher prices,” the FTC said in a statement.
The pigments are used to provide colour to products including cars, building materials, construction equipment, inks and plastics, according to the FTC.
BASF announced the impending acquisition last September. Through the move, the company said it hoped to achieve a substantially improved market position within plastic additives, coating effects materials and the water treatment and paper chemicals businesses.
The deal is expected to close on 9 April, according to BASF.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|