BASF and Shell Chemicals are selling their 50-50 plastics joint venture Basell, to a consortium led by Access Industries and The Chatterjee Group.
The sale price will be EUR 4.4 billion or $5.7 billion with debt included.
“Basell’s recent strong performance has shown that it was the right decision to form the joint venture,” said Dr. John Feldmann, member of the Board of Executive Directors of BASF Aktiengesellschaft, and Chairman of Basell’s Supervisory Board. “The strategic divestment will now create additional value for the BASF Group as part of the company’s ongoing portfolio management. In its Plastics segment, BASF will continue to focus its strategic position on styrenics, performance polymers, polyurethanes and their related value chains.”
According to a press release, BASF and Shell announced plans to review options for the joint venture in July 2004. The two companies established Basell as an independent company in 2000 to successfully consolidate their polyolefins businesses across the world. Basell achieved competitive advantages such as cost leadership through world-scale plants, and has developed into one of the world leaders in its industry.
“Basell has successfully consolidated the portfolio of polyolefins assets of the two shareholders to become a major player in the industry,” said Fran Keeth, Executive Vice President, Shell Chemicals. “The divestment enables Shell to optimize shareholder value and focus on our strategy of leveraging the synergies between oil products and chemicals activities, to strengthen our core portfolio in Europe and North America, and to grow in Asia and the Middle East.”
“I’m very pleased that we are the successful bidder for Basell,” said Len Blavatnik, Chairman of Access Industries. “We are experienced in industrial investments in companies that compete in large, cyclical markets, and we believe Basell is an attractively positioned global business with an excellent future. I am very impressed by Basell’s track record, and by the company’s highly professional and motivated management and workforce.”
The deal is expected to reach completion in the second half of this year.
Shell shares went up 1% on the London Stock Exchange whie BASF shares gained 0.6% in Frankfurt trading.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
