89% shareholders of Engelhard accept BASF offer

08-Jun-06

Investors in Engelhard holding 89% shares have agreed to accept the cash offer of US $39 a share. Thus, BASF has won over Engelhard investors with a US$5 billion bid, and now controls a majority of shares in its U.S. rival. BASF is steadying the company with acquisitions in less cyclical areas. BASF had made an initial offer of US$37 a share in January to tap growing demand for pollution- control devices in the United States and Europe. Earlier this year, Engelhard had forecast average annual profit growth of 16% through 2010. The pending purchase of Engelhard is BASF’s third deal this year, after Degussa's construction chemicals division for US$2.8 billion, and a Johnson Diversey unit for US$470 million.