02.12.2010 • NewsBASFCognisMergers & Acquisitions (M&A)

EU OKs BASF Purchase of Cognis, Conditionally

German chemical industry leader BASF won conditional European Union regulatory approval on Tuesday for its 3.1 billion Euro purchase of smaller peer Cognis to reinforce its presence in the cosmetic additives market.

The European Commission said the condition of the merger was BASF's divestment of its activities in the hydroxy monomers, a chemical product used in coatings and adhesives.

BASF unveiled the deal in June, forecasting a boost in earnings per share from 2012 from the acquisition. The takeover will add products such as additives for cleaning products and chemicals derived from palm, coconut and corn.

"The proposed transaction, as initially notified, would have created a very strong player in a market where concentration is already high," the Commission said in a statement. "To remedy the Commission's concerns, BASF offered to divest activities in the sector in question."

BASF's core chemicals and plastics business is heavily dependant on industries such as autos and construction, both of which were hit hard by the economic crisis. It expects to close the Cognis deal in November.

Company

Logo:

BASF SE

Carl-Bosch-Straße 38
67056 Ludwigshafen
Germany

Company contact







Free Expert Insights

Dual‑Targeting Breakthroughs
Advancements in Bispecific Antibody Development

Dual‑Targeting Breakthroughs

Unlock the latest breakthroughs in bispecific antibody development! Download Wiley’s free Expert Insights eBook to explore cutting-edge dual-targeting strategies, advanced purification methods, and bioanalytical technologies transforming immunotherapy and cancer treatment.

Innovation Pitch

The Start-up Platform for Chemistry & Life Sciences
Discover Tomorrow’s Innovators

The Start-up Platform for Chemistry & Life Sciences

CHEManager Innovation Pitch supports innovation in the chemistry and life sciences start-up scene. The platform allows founders, young entrepreneurs, and start-ups to present their companies to the industry.

most read