Basf Readies Offer for Degussa Unit

BASF wants to buy the construction chemicals division that Degussa said last week it would consider selling (C&EN, Dec. 19, page 10). BASF has proposed to the Düsseldorf-based specialty chemicals producer that the two companies conduct exclusive negotiations on the possible transaction, with discussions starting as quickly as possible.

The global construction chemicals market is valued at around $15.6 billion per year, with annual growth of about 4%, relatively stable margins, and high potential for innovation, BASF says.

Andreas Kreimeyer, a BASF board member, says the combination of BASF's expertise in chemistry and the extensive applications know-how of Degussa's construction chemicals division would be an excellent means of expanding BASF's business. "As market and technology leader and the largest supplier of construction chemical products, Degussa is an important global partner to the construction industry. Together with our own activities, we can open up new growth potential," he says. BASF is particularly interested in the business because it is global, active in particular in the important growth markets of North America and Asia.