BASF to Acquire Shares in Alsachimie
BASF and DOMO Chemicals have signed an agreement giving BASF the right to acquire DOMO Chemicals' 49% stake in the Alsachimie joint venture, in which BASF currently holds 51%.
Under applicable law, the proposed transaction is subject to consultations with the relevant social bodies of Alsachimie, following which both companies would enter into a binding purchase agreement. Subject to these consultations, BASF and DOMO Chemicals expect the transaction to be completed by mid-2025.
For BASF, the 100% acquisition of Alsachimie would be a strategic step to complement the company's strong presence in Chalampé, France, its European center for the production of polyamide (PA) 6.6 precursors. As sole owner of Alsachimie, BASF would be able to further strengthen the production structure and maximize the backward integration of key raw materials in the PA 6.6 value chain.
“As a key supplier for polyamide 6.6 precursors, it is our priority to ensure the reliable supply in Europe,” said Stephan Kothrade, member of the Board of Executive Directors of BASF. “By taking over the shares of our partner DOMO Chemicals, we are further strengthening our leading position and long-term commitment to the polyamide 6.6 value chain and paving the way for future growth with our customers in industries such as automotive and textiles.”
“For DOMO Chemicals, the intended transaction aligns with our strategy to continue to focus on delivering tailored polyamide solutions in the core segments automotive, consumer goods, industrial and electrical & electronics industries,” said Yves Bonte, CEO DOMO Chemicals.
Alsachimie was founded in February 2020 as a joint venture between BASF (51%) and DOMO Chemicals (49%). The company is located at the French-German border and produces essential precursors for polyamides, including KA-oil, adipic acid and hexamethylenediamine adipate (AH salt).
