BASF is laying the foundation for the rapid and efficient integration of Ciba's businesses and initiating structural changes within the organization which includes further development of its Performance Products segment as of April 1, 2009. So far as acquisition of Ciba is concerned, the company expects the approvals of the relevant antitrust authorities and the closing of the Ciba transaction toward the end of Q1 2009. The so-called "Discovery Phase" will begin immediately after closing during which joint teams consisting of BASF and Ciba employees will analyze the acquired businesses in depth for two months. The actual integration process is then expected to start in the H2 2009.
The current Acrylics & Dispersions division will be renamed Dispersions & Pigments and will bundle BASF's business with raw materials for the coating and paint industry. As a result, the existing dispersions business will be complemented by the pigments and coatings resins business that is currently part of the Performance Chemicals division. The acrylics business will be reassigned to the Petrochemicals division, which will then encompass the key steps in the propylene value chain. The superabsorbents business will be assigned to the Care Chemicals division. The majority of Ciba's Coating Effects business will be integrated into the Dispersions & Pigments division after the Discovery Phase.
The Performance Products segment currently consists of the Acrylics & Dispersions, Care Chemicals and Performance Chemicals divisions. As of April 1, 2009, the new division Paper Chemicals will also form part of the segment. This division will initially consist of BASF's business with paper chemicals business, binders and kaolin minerals, which is currently part of the Acrylics & Dispersions division. Following the completion of the Discovery Phase, Ciba's business with products for paper manufacturing will be integrated into the new division. In the future, the Performance Chemicals division will primarily offer innovative and specific solutions for a broad range of industries including plastics processing, automotive, refineries, oil fields and mining, as well as leather and textiles. Ciba's plastics additives business, among others, will be assigned to this division after the Discovery Phase.