Degussa Sells Unit To BASF

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.

Separately, as part of its continuing effort to take over Engelhard, BASF has filed a proxy statement nominating, as expected, two directors to Engelhard's board: Julian A. Brodsky, vice chairman of cable television operator Comcast, and John C. Linehan, former chief financial officer of Kerr-McGee. According to the statement, each has received a $40,000 fee from BASF for agreeing to stand as a director.