BASF is conducting exclusive negotiations with Degussa on the possible acquisition of its construction chemicals division.
The global construction chemicals market is valued at around 13 billion Euros and is attractive to BASF in view of its annual growth of about 4%.
‘We are interested in this business because of its global reach, its presence in important growth markets, in particular North America and Asia, and because of the high level of knowledge and innovativeness of its employees,’ said BASF Board member Dr. Andreas Kreimeyer.
According to Degussa’s annual report, the company’s construction chemicals division posted sales of approximately 1.8 billion Euros and an EBIT of 201 million Euros in fiscal 2004 with a global workforce of about 7,400 employees.
The division markets over 40,000 products in the Americas, Europe and Asia Pacific, and is organised in two segments – Admixture Systems and Construction Systems.
More than 100 new products are launched every year by the company.