On January 31, 2020, BASF completed the acquisition of Solvay polyamide (PA 6.6) business. Through this transaction, BASF has incorporated well-known innovative products such as the Technyl® brand to expand the strength of the polyamide business. BASF is able to provide customers with better engineering plastic solutions, such as in the field of autonomous driving and electric mobility. The completion of this transaction will also help BASF better access to major growth markets such as Asia, North and South America. By integrating the upstream key raw material adiponitrile (ADN), BASF will strengthen the polyamide 6.6 value chain as a whole and improve supply reliability. The purchase price paid by BASF for this transaction on a cashless and debt-free basis amounted to 1.3 billion euros; the sales of Solvay-related businesses acquired by BASF in 2018 were approximately 1 billion euros. The business will be integrated into BASF's Characteristic Materials Business Unit and Monomer Business Unit.
Wayne T. Smith, member of the Executive Board of BASF Europe, said: "Our customers will greatly benefit from BASF's wider product portfolio, stronger regional influence and more reliable supply. This acquisition represents our global polyamide Firm commitment to business. "
Solvay's transactions with BASF include Solvay's eight production sites in Germany, France, China, India, South Korea, Brazil, and Mexico, as well as R & D centers and technical consulting centers in Asia, North America, and South America. In addition, the transaction also includes shares in two French joint ventures, namely: Solvay's 50% stake in its joint venture plant Butachimie with INVISTA, which mainly produces adiponitrile (ADN) and hexamethylene di Amine (HMD); and a 51% stake in the newly established joint venture between BASF and Daumer Chemical, Alsachimie, which produces adipic acid.
After the transaction is completed, approximately 700 Solvay employees will join BASF. Alsachimie, a joint venture between BASF and Dummer Chemical in France, has about 650 employees. Butachimie, a joint venture between BASF and INVISTA, has about 400 employees.
In September 2017, BASF and Solvay signed an agreement on the acquisition of Solvay's overall polyamide business, which was approved by relevant regulatory agencies. On January 18, 2019, the European Commission approved BASF's acquisition of the polyamide business on the premise of meeting the relevant conditions, and requested that a part of the original transaction scope, namely the Solvay polyamide business's European production facilities and innovative capabilities, be divested and transferred To third-party buyers. Daumer Chemical, based in Leuna, Germany, has been approved by the European Commission as a buyer. Solvay and Domer Chemicals also completed related transactions on January 31, 2020.