BASF to buy Degussa unit for 2.8 bln euros-paper
Sun Feb 26, 2006pm ET
FRANKFURT, Feb 26 (Reuters) - German chemicals group BASF will pay almost 2.8 billion euros ($3.3 billion) to buy the construction chemicals unit of specialty chemicals company Degussa, a German newspaper reported on Sunday.
"We are very happy that the construction chemicals unit obviously will go to BASF," Hubertus Schmoldt, head of the IGBCE union and deputy chairman of the supervisory board of Degussa's top shareholder, mining group RAG [RUHR.UL], was quoted by the Sueddeutsche Zeitung newspaper as saying.
Schmoldt conceded that there were still some uncertainties, the paper said in a story released in advance of publication on Monday.
However, the paper said that the two companies were agreed in principle and that lawyers would now be drawing up contracts.
Neither BASF nor Degussa were immediately available for comment.
BASF and Degussa had said in mid-February that they were in exclusive talks over the sale of the unit, which had sales of 1.5 billion euros in the first nine months of 2005, with earnings before interest and tax of 174 million euros.
The sale of the unit is widely seen as prompted by RAG to help it fund the acquisition of the near 43-percent stake held by utility E.ON in Degussa.
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