Lanxess announces plans to exit ABS business

European chemicals company Lanxess has announced the creation of a new joint venture with British petrochemical firm INEOS. As part of the transaction, INEOS will gain a majority stake in Lustran Polymers, Lanxess’ ABS business unit.

According to the terms of the agreement, INEOS will go on purchase Lanxess’ 49 per cent minority stake in the business two years after the first closing in September 2007. The deal will allow Lanxess to completely withdraw from the ABS business.

“The transfer of this business unit to the joint venture headed by INEOS is a key milestone in Lanxess’ realignment and offers both the ABS business and its employees the best opportunities for further development,” said Lanxess Management’s chairman of the board Axel C. Heitmann.

Pension obligations, which total approximately EUR 30 million ($43 million), will be transferred to the joint venture. The proposed business still requires approval from antitrust authorities, and the parties expect the transaction to be completed at the end of September.