UpdateBASF concludes agreement to acquire Cognis for €3.1bn

23 June 2010 07:59  [Source: ICIS news]

SINGAPORE (ICIS news)--Germany's chemical major BASF said on Wednesday that it has concluded an agreement with specialty chemicals producer Cognis to acquire it for €3.1bn ($3.83bn).

"With the acquisition of Cognis, we are strengthening our portfolio with cyclically robust and profitable businesses and further expanding our position as the world’s leading chemical company,” said Jürgen Hambrecht, chairman of the board of executive directors of BASF.

Following the necessary approvals, the business would be integrated into BASF’s performance products segment, the company said.

"Closing of the transaction is expected for November 2010 at the latest," it added.

BASF's acquisition of Cognis will be its largest takeover since it bought specialty chemicals major Ciba last year for around €3.9bn.

BASF said equity purchase price of the deal would be €700m, while the “enterprise value” of the transaction would be €3.1bn, including net financial debt and pension obligations.

“By purchasing Cognis, we will in particular expand our portfolio with products based on renewable raw materials,” said John Feldmann, member of the board of executive directors of BASF and responsible for the company’s performance products segment.

Cognis is a supplier of specialty chemicals and nutritional ingredients, with a particular focus on the food and healthcare markets and the cosmetics, detergents and cleaners industries.

($1 = €0.81)

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By: Nurluqman Suratman

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