BASF and INEOS sign joint venture contract for Styrolution

BASF SE and INEOS Industries Holdings Limited have made an important step towards the establishment of the joint venture company Styrolution. On May 27, 2011 the companies signed a joint venture contract, which regulates the formation of the joint venture company Styrolution. The establishment of the joint venture is subject to approval by the appropriate antitrust authorities.

BASF and INEOS plan to combine their global business activities in styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene-butadiene block copolymers (SBC) and other styrene-based copolymers (SAN, AMSAN, ASA, MABS) as well as copolymer blends into the new joint venture called Styrolution. The business with expandable polystyrene is not part of the transaction. BASF and INEOS will retain their respective businesses.

The company headquarters will be located in Frankfurt/Main, Germany. In the joint venture 50% of the shares will be owned by BASF and 50% by INEOS. BASF will receive cash consideration following the completion of the transaction.

Dr. Martin Brudermüller, Vice Chairman of the Board of Executive Directors of BASF SE and responsible for the Plastics segment said: “The signing of the joint venture contract is an important milestone. With the signing we have built a strong foundation to establish Syrolution, the leading global company for styrenics, before the end of the year, subject to regulatory approval. Styrolution will deliver to its customers around the globe even better service, a fast and secure supply as well as excellent product quality.”

“The Joint Venture agreement paves the way for a globally competitive business that will provide significant benefit to its customers,” said Jim Ratcliffe, Chairman, INEOS Capital. “ Styrolution will be capable of meeting the long-term needs of a rapidly changing market as it competes effectively with large-scale producers from Asia and the Middle East.”