BASF India stock spurts as parent signs deal to acquire Chemetall
22 June 2016
BASF India, the Indian arm of global chemicals major BASF SE of Germany, saw its stock spurt on the Mumbai stock market to around Rs1,045.00 a share, gaining Rs33.55 or 3.32 per cent, after its parent announced the acquisition of the global surface treatment business of Chemetall.
The Rs10 face value scrip opened at Rs1,025.00 and has touched a high and low of Rs1,060.00 and a low of Rs1,025.00, respectively. So far 7,225 shares were traded on the counter.
BASF on Friday announced the signing of an agreement to acquire Albemarle's global surface treatment business, Chemetall at a purchase price of $3.2 billion. The transaction is subject to approval by the relevant authorities and is expected to close by the end of 2016, BASF stated in a release last week.
Chemetall is a global technology and innovation leader in the metals surface treatment market, and is headquartered in Frankfurt, Germany. It has approximately 2,500 employees globally, and operates 21 production sites in more than 20 countries, as well as 10 R&D locations and 24 sales offices. For the full calendar year of 2015, its had sales of $845 million.
''Chemetall offers a strong strategic fit for our coatings business, and supports BASF's aim to grow profitably in downstream, innovation and solution-focused businesses,'' said Wayne T Smith, member of the board of executive directors of BASF SE, responsible for the coatings division.
Chemetall develops and manufactures customised technology and system solutions for surface treatment. Their products protect metals from corrosion, facilitate forming and machining, allow parts to be optimally prepared for the painting process and ensure proper coating adhesion. These chemicals are used in a wide range of industries and end-markets, primarily automotive, aerospace, coil, and metal forming.
''Chemetall complements our current portfolio by adding the highly attractive surface treatment business to our coatings offerings. We look forward to joining forces with Chemetall's industry-leading expert team to further advance innovation and know-how-driven surface technologies for our customers around the world,'' said Markus Kamieth, president of BASF's coatings division.
The coatings division of BASF is a global expert in the development, production and marketing of innovative and sustainable automotive OEM and refinish coatings, industrial coatings and decorative paints. It serves customers by operating a collaborative network of sites in Europe, North America, South America and Asia Pacific. In 2015, the coatings division achieved global sales of about €3.2 billion.