BASF offers solutions to ease buy of Solvay’s PA unit

Last year, German chemical company BASF said that it would acquire Brussels-based Solvay’s polyamide business for EUR1.6 billion, subject to approval of the relevant merger control authorities. The deal has now come under the scrutiny of the approval process of the EU Commission, which opened an in-depth probe into the deal in June this year, citing concerns that the takeover could reduce competition in the nylon production chain.

To meet the concerns of the EU Commission, BASF has offered to refrain from acquiring certain parts of Solvay’s European polyamide business including innovation capabilities and manufacturing assets of Solvay’s intermediate and engineering plastics business.

The EU Commission is now examining this offer and submitting it for market testing before completing its review procedure.

By complementing the engineering plastics portfolio, enhancing the access to key growth markets in Asia and South America as well as strengthening the value chain through backward integration into key raw materials such as ADN (adipodinitrile), BASF said it would still achieve its key strategic objectives.

BASF and Solvay said they will continue to work closely with the EU Commission, which is expected to make a decision in early 2019.

As of now, the transaction has obtained merger clearance from eight of ten jurisdictions globally.

(PRA)

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