BASF to buy Solvay’s nylon business
Germany-based BASF said the purchase will complement its engineering plastics portfolio and expand its involvement in the transportation, construction, industrial applications, and consumer industries.
September 19, 2017 by Canadian Plastics
German chemical maker BASF SE is buying Solvay SA’s nylon business for 1.6 billion euros (US$1.9 billion).
In a statement, BASF said the purchase will complement its engineering plastics portfolio and expand its involvement in the transportation, construction, industrial applications, and consumer industries. “Regionally, the transaction [will] enhance access to key growth markets in Asia and South America,” BASF continued. “At the same time, the purchase [will] strengthen our polyamide 6.6 value chain through increased polymerization capacities and the backward integration into the key raw material ADN (adipodinitrile).”
The business unit will be integrated into BASF’s performance materials and monomers divisions, the statement added.
According to BASF, the acquisition is expected to improve the net financial position of the group by about 1.3 billion euros ($1.55 billion).
From Solvay’s perspective, meanwhile, the sale is part of the Brussels-based company’s transformation strategy to become a “multi-specialty” chemical company. “Solvay’s planned divestment of polyamides marks a tipping point in the profound transformation journey we began four years ago,” Jean-Pierre Clamadieu, CEO of Solvay, said in a statement. “Successful completion of this transaction will further reinforce Solvay as a multi-specialty chemical group, delivering superior growth and sustainable value.”
Solvay and BASF expect the transaction to close in the third quarter of 2018.