LUDWIGSHAFEN, Germany — BASF and Solvay have signed an agreement in which Solvay will sell its integrated polyamide business to BASF. The purchase price on a cash and debt-free basis would be €1.6 billion. The transaction is subject to consultations with the relevant social bodies of Solvay, following which both companies will enter a binding purchase agreement. Solvay and BASF aim to close the transaction in the third quarter of 2018, after customary regulatory approvals have been obtained and the formal consent of a joint venture partner has been received. The partner has already committed to grant its consent subject to the delivery of definitive documents with BASF.

The acquisition would complement BASF’s engineering plastics portfolio and expand the company’s position as a solution provider for the transportation, construction, industrial applications and consumer industries. Regionally, the transaction would enhance access to key growth markets in Asia and South America. At the same time, the purchase would strengthen BASF’s polyamide 6.6 value chain through increased polymerization capacities and the backward integration into the key raw material ADN (adipodinitrile).

For the full year 2016, net sales of the business to be purchased from Solvay amounted to €1,315 million. It has approximately 2,400 employees globally, with approximately 1,300 in France. Worldwide, it operates 12 production sites, four R&D locations and 10 technical support centers. The business would be integrated into BASF’s Performance Materials and Monomers divisions.