Europe approves BASF acquisition of Cognis
December 2, 2010
by Jeff Gelski
LUDWIGSHAFEN, GERMANY — The European Commission on Nov. 30 approved the acquisition of Cognis Holding GmbH by BASF SE, subject to the divestiture of certain businesses. Chinese authorities also approved the acquisition, which is expected to close in December.
BASF plans to divest businesses and assets at a Cognis site in Hyteh, England: They include the Cognis hydroxy methacrylates business, the Cognis multifunctional methacrylates (MFM) and adducts business, and plants for the manufacture of polyalkylene glycols (PAG) and PAG-based lubricants.
BASF in June reached an agreement with Cognis Holding Luxembourg S.a.r.l. controlled by Permira Funds, GS Capital Partners and SV Life Sciences to buy the specialty chemicals company Cognis for an equity purchase price of €700 million ($925 million). Including net financial debt and pension obligations, the transaction’s enterprise value is €3.1 billion ($4.1 billion).