BASF jumps as Lone Star to acquire parent firm's construction chemicals biz

BASF India surged 4.83% to Rs 1003 after the company's German parent signed a purchase agreement with an affiliate of Lone Star, a global private equity player, for acquisition of BASF's construction chemicals business.

The company said that BASF SE, its Germany, parent company, has signed a purchase agreement with an affiliate of Lone Star, a global private equity player, for acquisition of BASF's construction chemicals business. The announcement was made during trading hours Monday, 23 December 2019.

The purchase price on a cash and debt free basis is 3.17 billion euros. The transaction is expected to close in the third quarter of 2020, subject to approval of the relevant competition authorities. BASF's construction chemicals business operates production sites and sales offices in more than 60 countries and generated sales of about 2.5 billion euros in 2018, with more than 7000 employees worldwide.

In India, the construction chemicals business, which forms part of the Surface Technologies segment, has generated sales of Rs 484 crore for the year ended 31 March 2019.

BASF India's net profit soared 41.7% to Rs 13.29 crore on 23.9% rise in net sales to Rs 2,068.74 crore in Q2 September 2019 over Q2 September 2018.

BASF India is engaged in providing chemicals, plastics, performance products and crop protection products.

Powered by Capital Market - Live News