LUDWIGSHAFEN (dpa-AFX) - As per an article published in reuters, BASF (BFA.L, BASFY.PK) is in the process of finding a buyer for its plastics business to salvage the pending deal with Solvay's polyamide business.
In September 2017, BASF and Solvay agreed that BASF would acquire Solvay's polyamide business subject to approval of the relevant merger control authorities. In June 2018, The European Commission opened an in-depth investigation to assess the proposed acquisition, under the EU Merger Regulation. The Commission was concerned that the merger may reduce competition in the supply of key inputs in the nylon production chain. To meet the concerns of the EU Commission, BASF offered to refrain from acquiring certain parts of Solvay's European polyamide business including innovation capabilities and manufacturing assets of Solvay's intermediate and engineering plastics business. The EU Commission is expected to make a decision in early 2019.
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