Akzo Nobel Offers To Buy BASF's Industrial Coatings Business For EUR 475 Mln

(RTTNews) - Paints and coatings maker Akzo Nobel NV (AKZOY.PK, AKZOY) said it has made an agreed offer to acquire German chemical giant BASF SE's (BFA.L, BASFY.PK) Industrial Coatings business for 475 million euros. The company noted that the acquisition of the unit will strengthen its Performance Coatings business.

The transaction would include technologies, patents and trademarks, as well as securing supply to customers worldwide. In addition, two manufacturing plants - one each in the UK and South Africa - would also be transferred to AkzoNobel.

The business generated revenue of about 300 million euros in 2015 and supplies products for a number of end users, including coil, furniture foil and panel coatings, wind energy and general industry, and commercial transport.

The planned transaction is expected to be completed in the second half of 2016, subject to regular consultation with employee representatives and satisfaction of certain closing conditions, including receipt of required regulatory approval.

Ton Büchner, CEO of AkzoNobel said, "This proposed acquisition will strengthen our position in the important coil coatings market and fits well with our existing business, allowing us to offer essential solutions to our customers. We are continuing to deliver on our strategy to achieve our vision of leading market positions delivering leading performance."