BASF plans to acquire Ciba Holding AG for approximately €3.8 billion

15 September 2008

German chemical giant BASF plans to acquire Swiss specialty chemical maker Ciba Holding AG, for approximately €3.8 billion deal that has the backing of the Ciba board.

BASF will make a public takeover offer to Ciba's shareholders and will pay CHF 50.00 in cash for each nominal share in Ciba, the former specialty-chemical operations of Ciba-Geigy.

The offer corresponds to a premium of 32 per cent above the closing price for Ciba's shares on 12 September 2008 and a premium of 60 per cent above the volume-weighted average share price for Ciba shares in the 30 days prior to announcement of the public takeover offer.

Ciba's enterprise value would be CHF 6.1 billion (approximately €3.8 billion) based on all outstanding Ciba shares and including all net financial liabilities and pension obligations.

Analysts say the acquisition could help BASF improve efficiencies against the backdrop of  higher raw-material costs and increasing competition.

BASF's offer is also subject to an acceptance rate of at least 66.6 per cent of the voting rights and expects to finalize the transaction in the first quarter of 2009.