World's leading chemical maker, BASF SE has made a US$5.5 bln cash offer to acquire Swiss specialty chemical maker Ciba Holding AG which would apparently make BASF world's largest maker of plastic additives and paper chemicals. BASF intends to complete the deal by Q1 of 2009. The offer is 60% premium to the 30-days average stock price of Swiss specialty chemical maker. By this acquisition, BASF will fortify their portfolio and expand their leading position in specialty chemicals particularly for the plastics and coatings industries as well as water treatment.
The merger of the activities of BASF and Ciba would extend BASF's leading position as a preferred supplier to the plastics industry and make BASF the second-largest supplier of coating effect materials. In the fast-growing and highly profitable market for plastics additives, BASF would expand its portfolio by gaining important product segments such as UV stabilizers and antioxidants. Post-acquisition, BASF be offering a complete portfolio to their customers worldwide and will elevate the company to a global leadership position.