Ineos Buys Out BASF for Full Control of Styrolution JV
June 30, 2014
FRANKFURT, June 30 (Reuters) - Petrochemicals group Ineos has agreed to buy BASF's 50 percent stake in German plastics maker Styrolution for 1.1 billion euros ($1.5 billion) to take full control of the company, they said on Monday.
As part of a joint-venture agreement struck in October 2011, Ineos had the right to buy BASF's 50 percent of Styrolution, a maker of plastics used in car front grills, food packaging and Lego and Playmobil toys, from February this year onwards.
Styrolution will continue to operate as an independent company until completion of the deal, which is expected in the fourth quarter, the companies said in a joint statement.
Styrolution said in February that its adjusted core earnings jumped by almost a third in 2013, as it continued to reap the benefits of merging BASF and Ineos' two styrenic businesses.
Styrolution said at the time it was aiming for a slight increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) compared to the 442 million euros chalked up in 2013. ($1 = 0.7331 euros)
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