Green light for Basell
05-Oct-2000
The US Federal Trade Commission has cleared the way for the merger of the Royal
Dutch/Shell Group’s (Shell) and BASF’s polyolefin operations. The new 50/50 joint venture
was already approved, subject to conditions by the European competition authorities. It will
be called Basell. The existing companies Montell (100% Shell), Elenac (50/50 Shell/BASF)
and Targor (100% BASF) will be combined in the joint venture to form the world’s leading
polyolefin producer with revenues in excess of $6 billion.
Basell will be the global leader in polypropylene and the fourth largest producer of
polyethylene. It will be based in Hoofddorp, near Amsterdam in the Netherlands and have
over 20 production sites in Europe, Asia and the Americas and about 10,000 employees.
Basell is expected to realise at least $100 million in synergies – principally in Europe, where
there are overlapping activities.
More information about the new company can be found on the internet under
www.Basell.com, from 2 October.
Evert Henkes, chief executive of Shell chemicals and chairman of the Supervisory Board of
Basell said: “The creation of this joint venture with BASF is in line with our strategy to focus
on the production and delivery of major petrochemical building blocks and polyolefins to
large industrial customers. We have put together a world-class company which will provide
world-class service to our customers - Basell leads the polyolefins industry and will set new
standards.”
“The start-up of Basell marks the consistent, forward-looking strategy of BASF in the plastics
sector,” said Dr. Juergen Strube, Chairman of BASF’s Board of Executive Directors. “By
combining the strengths of two heavyweights in the market, Basell will demonstrate a leading
position through innovative products, efficient and cost-effective production and marketing
structures.”
Dr. Volker Trautz, president of Basell said: “We will now move rapidly forward with the
integration of the three companies and will continue to offer our customers high-quality
products and innovative solutions to problems. We want Basell to occupy the leading
position in polyolefins.”
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