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Business
BASF acquires Degussa unit
March 6, 2006
| A version of this story appeared in
Volume 84, Issue 10
Degussa has agreed to sell its construction chemicals business to BASF for $2.6 billion. Including the assumption of debt, the two firms value the long-awaited deal at $3.3 billion. The acquisition will give BASF access to the global construction chemicals market, which it says is worth $15.5 billion and growing 5% annually. BASF adds that construction chemicals is an attractive business because it enjoys relatively stable margins and has a high potential for innovation. The two expect the deal to close by the middle of this year, pending government approvals.
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