On January 18, 2019, the European Commission approved BASF's acquisition of Solvay's polyamide business subject to the relevant conditions. The approval is an important milestone in the transaction process. The transaction is expected to be completed in the second half of 2019, provided all remaining closing conditions are met, including the sale of a portion of the business to a third party as a remedy.
During the acquisition approval process in Europe, BASF is committed to addressing concerns raised by the European Commission regarding industry competition. The European Commission requested that part of the original transaction scope, namely Solvay's polyamide business production assets and innovative capabilities in Europe, be divested to a third-party buyer. Related divestiture transfers were initiated in the fourth quarter of 2018.
The polyamide business that BASF will acquire in the Americas and Asia is not affected.
With this acquisition, BASF will achieve key strategic goals and significantly increase the competitiveness of its polyamide 6.6 business. The acquisition will enrich BASF's engineering plastics business portfolio, enhance BASF's access to key growth markets in Asia and South America, and strengthen the value chain by integrating upstream key raw materials such as adiponitrile.