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The board of directors of chemicals major BASF India Ltd has approved the proposal to purchase the business of Cognis Specialty Chemicals Pvt Ltd in India for a consideration of Rs 13 crore.
This follows the global acquisition of Cognis Holding GmbH by BASF SE worldwide, and the completion of the integration process in December 2010.
Touted to be largest deal in the European chemical industry last year, BASF had agreed to buy the cosmetic additives maker Cognis in a €3.1 billion deal.
The Cognis business will be integrated into BASF India with effect from July 1, 2011, subject to requisite approvals, the note added. Cognis does not have a manufacturing facility in India, a BASF spokesperson told Business Line , adding that their operations in the country were small, with about 15 people.
“With the acquisition of Cognis, BASF will strengthen its performance products business and further expand our position as the world's leading chemical company,” Mr Prasad Chandran, Chairman, BASF Companies in India and Head South Asia, said in a company statement.
The integration of Cognis into BASF India will strengthen BASF's leading position in personal care ingredients and value-added products for home care. It will also expand BASF's existing portfolio in the nutrition and health as well as detergents & formulations businesses, the note added.
BASF shares were up over 2 per cent on the BSE, at Rs 588 on Friday.
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