BASF divests Phenoxy Business
BASF AG will divest the so-called phenoxy herbicide business (agrochemicals to control weeds, globally known under the trade names U 46® and Duplosan®) to Nufarm Limited, Melbourne, Australia. The sale comprises the six active ingredients 2,4-D, MCPA, Mecoprop-P, Mecoprop, Dichlorprop-P and Dichlorprop with sales of about EUR40 million in 2002. The transaction includes registrations, trademarks, intellectual property rights, customer lists and inventories.
The purchase price for this business including inventories amounts to EUR42 million. Both companies expect to close the transaction early 2004.
BASF's existing business with combinations of the above mentioned six active ingredients with innovative BASF herbicides does not form part of the divestiture. BASF will source the phenoxy active ingredients for these mixture products from Nufarm.
"For BASF, this is another step in focusing our Agricultural Products business on higher growth products," says Hans W. Reiners, President of BASF's Agricultural Products division. "There are products in our portfolio which, like the phenoxy herbicides, make a better strategic fit with a specialized company, such as Nufarm."
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