Paint and coatings maker Akzo Nobel has agreed to buy BASF’s industrial coatings business for 475 million euros ($531 million) to strengthen its position in various markets.
The two companies had said on Feb. 11 they were in talks on a possible deal.
BASF, the world’s largest chemicals maker by sales, has a strategy of selling businesses which have come under pressure from low-cost rivals.
The business, which had sales of 300 million euros in 2015, is seen by industry experts as lacking the scale needed to compete effectively in future.
AkzoNobel, which has in the past indicated it is open to smaller bolt-on acquisitions, said the coatings business was a good fit for its existing units.
“This proposed acquisition will strengthen our position in the important coil coatings market,” said AkzoNobel Chief Executive Ton Buchner in a statement.
As part of the deal, expected to complete in the second half of this year, two manufacturing plants – one in Britain and one in South Africa – will be transferred to AkzoNobel.
A small part of BASF’s 3 billion euro coatings division, the industrial coatings business supplies coatings for coils, furniture foil, and panels, as well as for applications in commercial transport and wind energy.
Some 77 percent of the coatings division’s sales come from the automotive coatings business.
($1 = 0.8950 euros)
(Reporting by Thomas Escritt and Ludwig Burger; Editing by Mark Potter and David Holmes)
Sika AG (Baar, Switzerland) has opened a new plant in Santa Cruz de la Sierra, thus doubling its production capacity for mortar and concrete admixtures in Bolivia. With this new facility in one of the country’s main industrial agglomerations, Sika is positioning itself for continued growth in the dynamic Bolivian construction market.
Chevron Corporation (NYSE: CVX) and Renewable Energy Group, Inc. (NASDAQ: REGI) (REG) announced on Monday a definitive agreement under which Chevron will acquire the outstanding shares of REG in an all-cash transaction valued at $3.15 billion, or $61.50 per share.
Lotte Chemical Corp. will invest 10 trillion won ($8 billion) on hydrogen and battery materials through 2030 to achieve annual revenue of 50 trillion won and carbon neutrality. The Korean chemical producer on Thursday unveiled its new corporate vision outlining key corporate strategies with focus on growth through hydrogen energy and battery materials businesses.