Lone Star to buy BASF construction chemicals unit for $3.51 billion

This post was originally published on this site

https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEFBK03N_L.jpg

(Reuters) – Private equity firm Lone Star has entered a deal to buy BASF’s (DE:) construction chemicals business for 3.17 billion euros ($3.5 billion) on a cash and debt-free basis, the German chemicals company said on Saturday as it seeks to focus on more profitable operations.

The deal, which has immediate effect upon BASF’s reporting, is expected to close in the third quarter of 2020, according to the statement.

Reuters reported last month that Lone Star was in negotiations to buy the BASF unit.

The private equity firm vied with a consortium comprising buyout groups Cinven – which owns peer Chryso – and Bain for the world’s largest maker of chemical additives for concrete, sources told Reuters in November.

Lone Star had previously walked away from the bidding but was invited back to the negotiating table.

BASF’s construction chemicals unit is the world’s largest maker of additives for concrete. It also offers a range of substances including concrete repair fillers, grouts and sealants under a business dubbed Construction Systems, where BASF is the No. 4 player globally.

BASF purchased the construction chemicals business from Degussa in 2006 for 2.7 billion euros including debt.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.