US FTC approves Basell Merger
1 Oct 2001
The US Federal Trade Commission has cleared the way for the merger of the Royal/Dutch Shell Group's (Shell) and BASF's polyolefin operations.
The new 50:50 joint venture was already approved, subject to conditions, by the European competition authorities.
It will be called Basell.
The existing companies Montell (100 % Shell), Elenac (50/50 Shell/BASF) and Targor (100 % BASF) will be combined in the joint venture and form the world's leading polyolefin producer with revenues in excess of $6 billion.
Basell will be the global leader in polypropylene and the fourth largest producer of polyethylene. It will be based in Hoofddorp near Amsterdam in the Netherlands and have over 20 production sites in Europe, Asia and the Americas and about 10,000 employees.
Basell is expected to realise at least $100 million in synergies - principally in Europe, where there are overlapping activities.
