Buying Chemetall

BASF Makes $3.2-Billion Purchase

basf_dpa
BASF is adding a new business to its portfolio.
  • Why it matters

    Why it matters

    The acquisition could help BASF to expand market share in the coatings market, where it competes with Dutch-based AkzoNobel and U.S.-listed PGG Industries.

  • Facts

    Facts

    • BASF is the world’s biggest chemicals maker based in Ludwigshafen.
    • The company has trailed rivals such as domestic rival Bayer, U.S. peer DowChemical and ChemChina in making takeovers as the sector consolidates.
    • The acquisition of Chemetall is BASF’s largest since 2010, according to news agencies.
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    Audio

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BASF, the world’s largest chemicals company, has agreed to buy surface treatment business Chemetall for $3.2 billion from U.S. peer Albemarle, the Ludwigshafen-based firm said Friday.

Chemetall, a company headquartered in Frankfurt, produces chemicals that protect metal from corrosion and make it easier to shape, paint or coat metal.

“Chemetall offers a strong strategic fit for our coatings business and supports BASF’s aim to grow profitably,” BASF’s executive board member Wayne T. Smith said in a statement.

Chemetall had a turnover of $845 million last year and employs 2,500 people globally.

BASF’s shares initially erased their gains of 0.5 percent after the news broke on Friday afternoon, but the stock was up again 0.2 percent at €67.94 ($76.49) by 4.57 p.m. in Frankfurt.

There has been speculation for months whether BASF would participate in the wave of mergers and takeovers in the chemicals industry, following Bayer’s $62-billion bid for U.S. seeds and pesticides maker Monsanto last month, ChemChina’s $43-billion takeover of Swiss seed and pesticides maker Syngenta and the planned merger of U.S.-listed DowChemical and DuPont.

 

020 BASF-WTB 2015 March 15 2016

 

Gilbert Kreijger is an editor with Handelsblatt Global Edition in Berlin, covering companies and markets. To contact the author: kreijger@handelsblatt.com

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