Switzerland-based Ineos Group AG has announced that it is to acquire BASF SE's 50 percent share in Styrolution GmbH, their joint venture formed in 2011.
Ineos is set to pay 1.1 billion euros ($1.5 billion) for Germany-based BASF's share of Styrolution. Styrolution was originally established to contain the bulk of BASF's styrenics operations that had been under review from 2007.
The deal is subject to approval by antitrust authorities but is expected to be finalized in the fourth quarter of 2014, up until which point Styrolution will continue to operate as an independent company. The business will then become a subsidiary of Ineos.
“Styrolution has fulfilled its promise as a globally competitive business that competes effectively with large-scale producers from Asia and the Middle East. We are pleased to bring Styrolution fully into the Ineos family. After the purchase, Styrolution will be run separately as a standalone company within Ineos, and continue to operate as it does today,” said Ineos Chairman Jim Ratcliff.
In 2013, Styrolution reported sales of 5.8 billion euros ($7.9 billion). The company employs approximately 3,200 people and operates 17 production sites in ten countries.