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BASF - News
BASF acquires electronic
chemicals business of Merck KGaA
BASF to become a leading
supplier in fast growing market
Double-digit growth rates
in 2004
BASF Aktiengesellschaft,
Ludwigshafen, today acquired the global electronic chemicals business of
Merck KGaA, Darmstadt. The purchase price is €270 million. The transaction
is still subject to approval by the regulatory authorities. Closing is
expected in the second quarter of 2005.
In the first nine months
of 2004, Merck increased global sales at its electronic chemicals business
by 16 percent to €155 million. The business currently has about 600
employees.
Through the acquisition of
these new activities, BASF will become a leading supplier of electronic
chemicals for the rapidly growing semiconductor industry and for the production
of flat screens, another area that shows high growth rates. The business
acquired from Merck will help develop BASF’s electronic chemicals business
and will significantly strengthen BASF’s market position in Europe and
Asia. “This deal supports BASF’s strategic goal of profitable growth and
at the same time provides us with a solid foundation for our future in
the electronics industry,“ said Dr. Harald Schwager, head of the Inorganics
division.
“Our customers will benefit
from BASF’s expertise in chemistry and production combined with Merck’s
experience in purification, formulation and analysis,” said Dr. Karl-Rudolf
Kurtz, head of BASF’s Electronic Materials business unit. “By combining
all our electronic chemicals activities, our business unit provides a platform
for our future growth in this innovative and growing industry,” he said.
“Through this acquisition, BASF will become a system supplier for the electronics
industry and will be able to supply its customers with tailor-made solutions.”
The acquisition includes
Merck’s production sites and distribution centers for high-purity chemicals
in Taiwan, Malaysia, China, Singapore, France, the Netherlands and Germany.
For a given period of time
– at the latest until the end of 2005 – Merck and BASF shall jointly manage
the business in the key Taiwanese market under leadership by BASF. This
is intended as a signal to both customers and employees that both parties
are particularly interested in ensuring a smooth transition and developing
the business further.
Following the end of the
transition period – but by no later than the end of 2005 – BASF has the
right to acquire Merck’s share in operations in Taiwan.
Electronic chemicals are
essential for the production of semiconductor chips and flat screens. Such
chemicals are extremely pure and are characterized by above-average growth
rates. The global market for electronic chemicals was worth €3 billion
in 2003 and has grown by an average of 10 percent per year in recent years.
Note: A press photo can be
downloaded from the Internet at www.basf.de/pressphotos, keyword “Acquisitions”.
About Merck:
Merck is a global pharmaceutical
and chemical company with sales of EUR 7.2 billion in 2003, a history that
began in 1668, and a future shaped by 28,300 employees in 56 countries.
Its success is characterized by innovations from entrepreneurial employees.
Merck's operating activities come under the umbrella of Merck KGaA, in
which the Merck family holds a 74 percent interest and free shareholders
own the remaining 26 percent. The former U.S. subsidiary, Merck & Co.,
has been completely independent of the Merck Group since 1917
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