Akzo Nobel acquires BASF

Akzo Nobel has announced that it has reached an agreement with BASF in a deal worth €475 million. This is the first step in the acquisition process.

The transaction will include technologies, patents and trademarks. Of course, securing sales channels to customers is also included in the transaction. Two factories, one in the UK and one in South Africa, will also be transferred to Akzo Nobel. The acquired business generated sales of around €300m in 2015.

This transaction is expected to be finalized in the second half of this year, following consultations with employee representatives and the completion of the mandatory steps for transactions of this level, including the receipt of the required approvals.

The sale came amid BASF's policy of selling off certain businesses, with resent pressure from low-cost competition one of the reasons. On the other side, Akzo Nobel has repeatedly said it is open to acquiring business-smaller products to complement the existing offer. In fact Ton Buchner, CEO of Akzo Nobel, said the acquisition fits well with Akzo Nobel's other businesses.

Source

Akzo Nobel