BASF have entered into a definitive agreement with Honeywell to purchase their worldwide engineering plastics businesses. In a linked agreement, BASF have also agreed to sell their worldwide nylon fibres businesses to Honeywell.
As a consequence of these deals, BASF will concentrate on its plastics businesses which encompass materials such as styrenics, polyurethanes and nylon intermediates. However, they will play no further part in the nylon fibres market.
By acquiring the engineering plastics divisions of Honeywell, BASF will enhance its plastics portfolio, enabling them to offer a greater range of solutions to the market. They will also acquire manufacturing facilities, research and development assets and technical service locations worldwide.
Areas set to gain from BASF’s acquisition include automotive, packaging and the electrical and electronics industries. New markets will no doubt be developed as a result of new product lines made available through the acquisition.
Pursuant with the acquisition, BASF will also sell its nylon fibres business to Honeywell. It should be noted that this does not include nylon and intermediates operations.
As part of the arrangement, Honeywell will acquire BASF’s carpet fibre business, textile fibres businesses and nylon fabrics businesses. These include manufacturing operations, research facilities and sales offices in North America and China.
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