Chemicals maker BASF SE has entered into a pact with an affiliate of Lone Star, a global private equity player, to sell its construction chemicals business for €3.17 billion (around Rs 25,003 crore), according to a regulatory filing.
"We have now been informed by BASF SE, Germany, parent company, that it has signed a purchase agreement with an affiliate of Lone Star, a global private equity player, for acquisition of BASF's construction chemicals business,” BASF India Ltd. said in a filing to the Bombay Stock Exchange on Monday.
The purchase price on cash- and debt-free basis is €3.17 billion, the company said. The transaction is expected to close in the third quarter of 2020, subject to approval of the relevant competition authorities, it said.
BASF's construction chemicals business operates production sites and sales offices in more than 60 countries and generated sales of about €2.5 billion in 2018, with more than 7,000 employees worldwide.
In India, BASF's construction chemicals business, a part of the surface technologies segment, has generated sales of Rs 484 crore for the year ended Mar. 31, 2019.
On Monday, BASF India shares rose 3.07 percent to Rs 988.20 apiece on the NSE while the benchmark Nifty 50 declined 0.05 percent to end the day at 12,266.15 points.
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