BASF jumps 4% on selling construction chemicals biz to Lone Star

BASF India
BASF SE, Germany, parent company of BASF Ltd. announced that it has signed a purchase agreement with an affiliate of Lone Star, a global private equity player, for acquisition of BASF's Construction Chemicals Business.

The purchase price on a cash and debt free basis is EUR 3.17bn. The transaction is expected to close in the third quarter of 2020, subject to approval of the relevant competition authorities.

BASF's Construction Chemicals business operates production sites and sales offices in more than 60 countries and generated sales of ~EUR 2.5bn in 2018, with more than 7,000 employees worldwide.

In India, the construction chemicals business, which forms part of the Surface Technologies segment, has generated sales of Rs484cr for the year ended March 31, 2019.

BASF in a letter dated October 26, 2018, intimated that BASF SE, Germany, had decided to evaluate strategic options for its construction chemicals business and it could either consider a merger of its construction chemicals business with a strong partner or a divestiture, subject to such approvals, as may be necessary.

BASF India Ltd is currently trading at Rs995.45 up by Rs38.65 or 4.04% from its previous closing of Rs956.80 on the BSE.

The scrip opened at Rs957.50 and has touched a high and low of Rs1,015.55 and Rs955.80 respectively. So far 1,15,835 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs4,141.99cr.

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