BASF Shows Interest In Degussa's Construction Chemicals Business
January 3, 2006
BASF has expressed interest in acquiring Degussa's construction chemicals division to expand its own portfolio in a high-growth market through forward integration. With the approval of its Supervisory Board, BASF's Board of Executive Directors has proposed to Degussa's Board of Management to conduct exclusive negotiations on the possible transaction. Following a detailed review of the business case, BASF plans to make a concrete offer for Degussa's business. BASF hopes to start the review as soon as possible. The global construction chemicals market is valued at around €13 billion and offers an attractive annual growth of about 4 percent, relatively stable margins, and high potential for innovation. The acquisition of Degussa's business would give BASF quick access to additional industrial customers and end-users.