BASF, Ineos offered EU commission sell facility

BASF, Ineos offered EU commission to sell facility

11:51 AM, 23rd May 2011
BASF, Ineos offered EU commission to sell facility
BASF storage facility. (C) BASF Photos.

FRANKFURT, GERMANY: BASF SE and UK-based Ineos Industries Holdings Ltd offered to sell a plant to gain regulatory approval from the European Commission for their proposed joint venture, Styrolution, a BASF spokesman said Monday.

In November 2010, BASF announced plans for Styrolution with expected annual sales of more than 5 billion. The joint venture company would produce styrenics - a compound used to make synthetic plastics and rubbers.

According to BASF estimates, the plant doesn’t exceed 3 per cent of either pro-forma earnings before interest, taxes, depreciation and amortization (EBITDA), before exceptional items or pro-forma total assets of Styrolution Group GmbH for the year ended December 31, 2010.

Under the plan, Ineos will buy the other 50 per cent shareholding in its 50-50 styrenics joint venture, Ineos NOVA, from Canada-based NOVA Chemicals and transfer those activities to the new Styrolution group.

BASF and Ineos Industries - a wholly-owned subsidiary of Switzerland-based Ineos AG - expect “the commission will market test the proposed remedy,” adding that the venture is still subject to further approvals and consents.

© 2011 Dow Jones Newswires

 

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