Today, BASF, Solvay, and Daumer Chemical reached an agreement and agreed to acquire Solvay's European polyamide 6.6 business by Daumer Chemical. The transaction is scheduled to be completed by the end of 2019, but approval from relevant competition regulators is still required. Pursuant to the agreement signed in September 2017, BASF will acquire Solvay's global polyamide 6.6 business outside Europe, including 50% of adiponitrile (ADN) production owned by Solvay's French joint venture Butachimie. The transaction is also expected to be completed by the end of 2019, subject to the approval of the transaction between Daomo Chemical and Solvay and the final approval of relevant competition regulators.
BASF intends to acquire Solvay's eight production sites in Germany, France, China, India, South Korea, Brazil and Mexico. BASF and Daumer Chemical also plan to establish a joint venture in France to produce adipic acid. In addition, Solvay's three R & D centers in South Korea, China, and Brazil, and six technical consulting centers in Europe, Asia, and North and South America will be transferred to BASF.
BASF's purchase price for the transaction on a cashless and debt-free basis is expected to reach 1.3 billion euros. Solvay-related businesses to be acquired by BASF have sales of approximately € 1 billion in 2018. Approximately 700 Solvay employees will be transferred to BASF after the transaction is completed. The joint venture between BASF and Domo Chemicals in France will employ approximately 650 employees. BASF plans to integrate the acquired business into the Monomers and Performance Materials business.
The acquisition will help BASF better access important growth markets in Asia and South America, and promote close cooperation with local customers. BASF's engineering plastics product line and product portfolio will also be strengthened, further strengthening BASF's position as an innovative solution provider in the transportation, construction and consumer products industries. By integrating upstream key raw materials such as adiponitrile (ADN), BASF will strengthen the polyamide 6.6 value chain, thereby further increasing its ability to produce polymers.