Chemical giant, BASF has announced it has agreed to purchase Solvay’s Polyamides business for €1.6 billion on a cash and debt-free basis.
The completion of the transaction is subject to consultations with the relevant social bodies of Solvay, according to applicable laws, following which both companies will enter a binding purchase agreement. It is hoped the deal will be complete by the third quarter of 2018, after customary regulatory approvals have been obtained and the formal consent of a joint venture partner has been received. The partner has already committed to grant its consent subject to the delivery of definitive documents with BASF.
BASF has sought the purchase of a reputable Polyamides business to strengthen its position as a solution provider to various industries, and enhance a backward integration into key raw materials. A company press release outlined the potential benefits to the transportation, construction, industrial applications and consumer industries.
Though unconfirmed, it may impact on BASF’s additive manufacturing efforts. The company’s 3D Printing Solutions business began operation at the beginning of the month, and last year BASF aligned with HP to develop materials through its Open Platform Program. As per the HP Materials Roadmap, many of these materials will be polyamide based. Appearing in TCT Magazine Europe 25.5 is a feature on BASF’s 3D Printing Solutions business – Here, Global Business Director, 3D Printing, Dirk Simon referenced the company’s goal to produce resilient plastic materials for series production of functional components in automotive and electronics applications, among other things.
Not only does BASF expect it to complement the service it already provides, but it also expects the investment to enhance its access to key growth markets in Asia and South America. At the same time, it will “strengthen BASF’s polyamide 6.6 value chain through increased polymerisation capacities and the backward integration into key raw material AND (adipodinitrile),” as per a company press release.
For Solvay, the sale of its Polyamide business represents a ‘crucial step’ in its transformation towards a multi-speciality chemicals company. It is believed the Belgian company will begin to focus on specific applications in the aerospace, automotive and oil and gas industries.
“Solvay’s planned divestment of Polyamides marks a tipping point in the profound transformation journey we began four years ago. Successful completion of this transaction will further reinforce Solvay as a multi-speciality chemical group, delivering superior growth and sustainable value,” commented Jean-Pierre Clamadieu, CEO of Solvay.
