BASF to acquire Ciba for Euro4bn

Ludwigshafen, Germany – BASF has announced plans to acquire Ciba Holding AG of Basel, Switzerland, in a deal that values the Swiss speciality chemical company at around Euro3.8 billion. The acquisition, which is being supported by Ciba's board, will strengthen BASF's portfolio and expand its position in various markets, including the plastics and coatings,water treatment and paper chemicals industries, said Dr. Jürgen Hambrecht, chairman of BASF.

“Ciba has a leading market position, in particular with its portfolio of plastics additives and coating effect materials, and offers its customers significant benefits,“ noted Hambrecht. “The integration of Ciba’s activities into BASF and the necessary further restructuring measures will give the businesses sustainable strength and offer them a long-term perspective for profitable growth. The precondition for this is to rigorously improve operational excellence.“

Hambrecht continued: “We look forward to working with Ciba’s highly committed executives and employees. We offer the company and its employees a new home with a long-term, viable perspective. Basel will remain an important site for parts of the combined business, in particular research, and we will establish a global operating division there.”

“Against the backdrop of increasingly challenging conditions within our industry, this is a transaction which combines a fair price with an industrially compelling solution for Ciba,” said Dr. Armin Meyer, chairman of Ciba. “Ciba’s businesses will be strengthened substantially thanks to integration into BASF’s Verbund and the access to BASF’s research, production and marketing platform. This applies particularly in the Plastics, Coatings and Paper divisions.

The merger of the activities of BASF and Ciba would extend BASF’s position in the plastics industry and make the German group the second-largest supplier of coating effect materials. Thius includes gaining important plastics additives product segments such as UV stabilisers and antioxidants and a wider range of pigments, resins and additives for coatings.

Key data for BASF and Ciba (2007)

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