Bulletin: Chemicals Producer BASF Ratings And Outlook Unaffected By Announced Plans To Acquire Solvay's Integrated Polyamide Unit

FRANKFURT (S&P Global Ratings) Sept. 29, 2017--S&P Global Ratings said today that its ratings and outlook on Germany-based chemicals producer BASF SE (A/Stable/A-1) are unchanged following BASF's announcement that it would acquire Belgium-based chemical company Solvay S.A.'s integrated polyamide business. On Sept. 19, 2017, BASF announced that it had signed an agreement with Solvay to purchase Solvay's integrated polyamide business for a price consideration of €1.6 billion on a cash and debt free basis. The transaction is subject to consultation with the relevant social bodies of Solvay, after which both parties may enter in a binding purchase agreement. It will be subject to regulatory approvals and to formal consent of a joint venture partner. BASF expects to close the acquisition

...FRANKFURT (S&P Global Ratings) Sept. 29, 2017--S&P Global Ratings said today that its ratings and outlook on Germany-based chemicals producer BASF SE (A/Stable/A-1) are unchanged following BASF's announcement that it would acquire Belgium-based chemical company Solvay S.A.'s integrated polyamide business. On Sept. 19, 2017, BASF announced that it had signed an agreement with Solvay to purchase Solvay's integrated polyamide business for a price consideration of 1.6 billion on a cash and debt free basis. The transaction is subject to consultation with the relevant social bodies of Solvay, after which both parties may enter in a binding purchase agreement. It will be subject to regulatory approvals and to formal consent of a joint venture partner. BASF expects to close the acquisition in the third quarter of 2018. In our view, the acquisition will marginally strengthen BASF's business profile by complementing its engineering plastics portfolio exposed to the transportation, construction, industrial...

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