BASF is among the top three gainers on the BSE currently. It opened a bit of trepidation at Rs.957.50 as against its Rs.956.80 close on Friday. But soon it jumped to an intraday high of Rs.1015.55, rising over 6%. Volumes are very robust, going up 7 times.
The company announced today morning that BASF SE, Germany, its parent company has signed a Purchase Agreement with an Affiliate of Lone Star, a global private equity player, for acquisition of BASF's Construction Chemicals Business.
The purchase price on a cash and debt free basis is EUR 3.17 billion.
The transaction is expected to close in the third quarter of 2020, subject to approval of the relevant competition authorities.
BASF's Construction Chemicals business operates production sites and sales offices in more than 60 countries and generated sales of about EUR 2.5 billion in 2018, with more than 7000 employees worldwide.
In India, the construction chemicals business, which forms part of the Surface Technologies segment, had generated sales of Rs. 484 crore for the year ended 31st March, 2019.
The sale comes as BASF cuts jobs and slashes profit expectations as it battles to contend with slowing demand.