The acquisition took place on January 31st, allowing the company to enhance their business by giving its customers an even better engineering plastic solutions for areas like autonomous driving and e-mobility.
This transaction enables the company to expand to Asia, North and South America.
The purchase price for the polyamide business is 1.3 billion Euros. The net income generated by the company in 2018 was about 1 billion Euros.
The acquisition will be integrated into the Performance Materials and monomer divisions of BASF. The acquisition gives BASF ownership to eight manufacturing sites located in India, Mexico, China, Germany, France, South Korea and Brazil. It also gives ownership to research and development in Asia, North and South America.
It also includes shares in two joint ventures (JV) in France: Solvay’s 50% share in the Butachimie JV with Invista to manufacture ADN and hexamethylenediamine (HMD) and a 51% share in the new Alsachimie JV between BASF and DOMO Chemicals for the production of adipic acid.
A total of 1750 employees from Solvay and their joint ventures will shifted to BASF’s pay roll.
The E.U. Commission approved the acquisition of the polyamide business, which is subject to some conditions, on January 18, 2019. These conditions required the sale of parts of the original transaction scope to a third party, specifically Solvay’s production plants and innovation competencies in the engineering plastics field in Europe. DOMO Chemicals, Leuna, Germany, was approved by the E.U. Commission as the buyer. The transaction between Solvay and DOMO Chemicals also closed on Jan. 31, 2020.
Nishtha Sarabhai after working for three years in a Bank switched to writing to balance her work and home. She is a mother of two beautiful kids. She enjoys writing on Aerospace, Science and new invcentions. She has been with VMR news since its inception.