Akzo Nobel acquires BASF

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

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

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

The sale came amid BASF's policy to sell certain businesses, with pressure from low-cost competition being one of the reasons. On the other hand, Akzo Nobel has repeatedly stated that it is open to acquiring business-smaller ones to complement the existing offer. Incidentally Ton Buchner, CEO of Akzo Nobel, said the acquisition fits well with Akzo Nobel's other businesses.

Source

Akzo Nobel