Hoechst restructuring accelerates
15 Jan 2000
The mammoth restructuring of German chemicals behemoth Hoechst continues. Just weeks after announcing the break-up of the company into individual independent units, Hoechst has opted to merge its specialities division with that of Swiss group Clariant, while bidding for total control of drugs unit Roussel Uclaf.
The agreement with Clariant - formerly the chemicals wing of Sandoz - is complex. Hoechst will transfer its masterbatches, pigments and additives, surfactants, textile, paper and leather chemicals, fine chemicals, dispersions and cellulose ether businesses into Clariant, in return receiving a `substantial minority interest' in the new company. Clariant's speciality sales will increase from DM2.7billion to some DM9billion, and add some 23 000 staff to the current 8500-strong workforce, propelling it to the top of the first division of the fragmented specialities industry.
The first stage of the deal will be for Hoechst to shift the businesses into a new, independent company, as discussed previously (PE Dec 1995, p12). Afterwards, it will transfer its assets to Clariant in exchange for newly-issued shares. The companies have not disclosed how large Hoechst's stake will be.
Meanwhile, Hoechst is bidding FFr1.53 per share - a total of FFr18million - for the 43.47 per cent stake in Roussel Uclaf that it does not already own. The move completes Hoechst's ambition to combine RU with its own drugs wing, Hoechst Marion Roussel. It also strengthens its sales presence in France, the world's third largest drugs market. The RU Research Centre at Romainville is one of HMR's three main research sites, concentrating on investigations of anti-infective agents and treatments for bone disorders.
