BASF closes €1.3 billion acquisition of Solvay’s polyamide business
03 Feb 2020 --- Chemical producer BASF has closed the acquisition of Solvay’s polyamide (PA 6.6) business on a cash and debt-free basis for €1.3 billion. The transaction broadens BASF’s polyamide capabilities with innovative and well-known products such as Technyl and enhances the company’s access to growth markets in Asia as well as in North and South America. Solvay’s polyamide business generated approximately €1.0 billion in sales in 2018. The business will be integrated into the Performance Materials and Monomers divisions of BASF.
BASF indicates that the acquisition will support its customers with “even better engineering plastics solutions,” for example, for autonomous driving and e-mobility. Through the backward integration into the key raw material adiponitrile (ADN), BASF will now be present along the entire value chain for polyamide 6.6 and improve its supply reliability.
“With a broader portfolio, a stronger regional presence and improved supply reliability BASF will deliver significant benefits to our customers,” comments Wayne T. Smith, member of the Board of Executive Directors of BASF SE. “The acquisition stands for our strong commitment to the polyamide business globally.”
The transaction between Solvay and BASF includes eight production sites in Germany, France, China, India, South Korea, Brazil and Mexico as well as research and development centers and technical consultation centers in Asia, North and South America. Also, it encompasses shares in two joint ventures (JV) in France: Solvay’s 50 percent share in the Butachimie JV with Invista to produce ADN and hexamethylenediamine (HMD) and a 51 percent share in the new Alsachimie JV between BASF and DOMO Chemicals to produce adipic acid.
At closing, approximately 700 Solvay employees join BASF. The Alsachimie JV between BASF and DOMO Chemicals in France employs approximately 650 employees, the Butachimie JV between BASF and Invista has approximately 400 employees.
In September 2017, BASF signed an agreement with Solvay on the acquisition of Solvay’s global polyamide business, subject to the approval of the relevant antitrust authorities. The EU Commission approved the acquisition of the polyamide business, subject to certain 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 EU Commission as the buyer. The transaction between Solvay and DOMO Chemicals also closed on January 31, 2020.
Polyamides are commonly used to provide strength in multi-layered packaging structures such as films.
Edited by Joshua Poole
