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| BASF to acquire Degussa’s construction chemicals business German chemical company BASF, Ludwigshafen, reached an agreement with Degussa AG, Düsseldorf, to acquire Degussa’s construction chemicals business. The purchase price for equity is just under €2.2 billion. As a result, the transaction value for BASF is €2.7 billion. The transaction, which still requires approval from the relevant authorities, is expected to close by the middle of 2006. The global construction chemicals market is valued at around €13 billion and is attractive in view of annual growth of about 4 to 5 percent, relatively stable margins and high potential for innovation. The acquisition of Degussa’s business will give BASF rapid access to additional industrial customers and end-users. In fiscal 2004, Degussa’s construction chemicals division posted sales of approximately €1.8 billion and an EBIT of €201 million, with a global workforce of about 7, 400 employees. As the market and technology leader as well as the largest supplier of construction chemical products, the division markets about 40, 000 products worldwide and is organized in two segments – Admixture Systems and Construction Systems. The business units in the Admixture Systems segment offer products and system solutions for the concrete industry. The business units in the Construction Systems segment are active in the areas of building systems, flooring applications, coatings and façades and expansion joints. write your comments about the article :: © 2006 Construction News :: home page |