EU Commission approves formation of joint venture Styrolution
BASF and INEOS Industries to combine their global styrenics businesses. Joint venture to be a leader in the global styrenics market. Remedy relates to ABS production site in Spain.
- (1888PressRelease) June 02, 2011 - The EU Commission has today given its approval for the formation of the joint venture Styrolution. BASF SE, Ludwigshafen, Germany, and INEOS Industries Holdings Limited, Lyndhurst, UK, now have EU clearance to combine in Styrolution their global business activities in styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene-butadiene block copolymers (SBC) and other styrene-based copolymers (SAN, AMSAN, ASA, MABS) as well as copolymer blends. Pro forma sales of the combined businesses were €6.4 billion in 2010. Expandable polystyrene is not part of this transaction. BASF and INEOS will retain their respective businesses.
With Styrolution, BASF and INEOS will establish the leading company in the global styrenics market. Styrolution has an excellent global position with production sites in Europe, Asia and North America.
The EU Commission has approved the formation of the joint venture subject to the requirement that the parties sell an ABS production site in Tarragona, Spain. This site accounted for less than 3% of Styrolution’s pro forma EBITDA for the year 2010. The formation of the new joint venture has already been approved by the U.S. Federal Trade Commission without any remedies.
BASF and INEOS will continue to operate as strictly independent companies until the completion of the deal, which is anticipated in 2011, subject to remaining approvals from antitrust authorities in other countries.
Styrenics are mainly used for household and office products, for electrical and communication devices and for packaging. Styrene-based copolymers are thermoplastic resins based on styrene and acrylonitrile. They are mainly used in automotive and technical applications as well as for many everyday products.
Press Contact:
BASF SE INEOS Industries Holding Limited
Michael Grabicki Richard Longden
Phone: +49 621 60-99938 Phone: +44 2380 287037
Fax: +49 621 60-92693 Fax: +44 7710 371998
michael.grabicki ( @ ) basf dot com
richard.longden ( @ ) ineos dot com
About BASF
BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and agricultural products to oil and gas. As a reliable partner BASF creates chemistry to help its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of about €63.9 billion in 2010 and had approximately 109,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN). Further information on BASF is available on the Internet at r www.basf.com or in its Social Media Newsroom at newsroom.basf.com.
About INEOS
INEOS is the world's third largest chemicals group and a leading manufacturer of petrochemicals, speciality chemicals and oil products. Comprising 15 businesses and with a production network spanning 61 manufacturing facilities in 13 countries, the group produces more than 40 million tonnes of petrochemicals and 20 million tonnes per annum of crude oil refined products (fuels) each year. INEOS employs around 15,000 people and has annual sales of around $40 billion. Further information about INEOS is available on the internet at: www.ineos.com.
INEOS Industries Holdings Limited
INEOS Industries Holdings Limited is a wholly owned subsidiary of INEOS AG, comprising INEOS ABS, INEOS Styrenics, INEOS Melamines and INEOS Bio. INEOS Industries is not a part of INEOS Group Limited.
Forward-looking statements
This release contains forward-looking statements based on current experience, estimates and projections of BASF’s and INEOS’ management and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict and are based upon assumptions as to future events that may not prove to be accurate. Many factors could cause the actual results, performance or achievements of BASF and INEOS to be materially different from those that may be expressed or implied by such statements. BASF and INEOS do not assume any obligation to update the forward-looking statements contained in this release .
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