Merck EC business, with about 600 employees, will transfer to BASF

31-Jan-2005

Merck KGaA announced that it sold its worldwide Electronic chemicals business to BASF AG of Ludwigshafen for EUR 270 million in order to focus on its innovation-driven businesses of pharmaceuticals and chemicals. The transaction is still subject to approval by antitrust authorities and is expected to close in the second quarter. This move reflects Merck's business strategy of concentrating on innovation-driven pharmaceutical and chemical businesses with long-term profitability.

The transaction includes Merck Electronic Chemicals management, technology and production facilities in Asia and Europe. Merck KGaA employees in Darmstadt, who already toll manufacture for Merck Electronic Chemicals, will remain with Merck and continue to manufacture for BASF for the next three years. Merck Electronic Chemicals has operated as a legally independent company wholly owned by Merck KGaA since January 1, 2003.

The electronic chemicals business sold to BASF had sales of EUR 155 million, a 16 percent increase, during the first nine months of 2004. It supplies the semiconductor industry with a complete range of ultra-pure process chemicals and also offers chip manufacturers a variety of analysis-related services. The electronic chemicals business has approximately 600 employees, who will transfer to BASF.

The divestiture includes Merck's production sites and distribution centers for electronic chemicals in Taiwan; Malaysia; China; France; Singapore, the Netherlands and Germany.

https://www.chemeurope.com/en/news/43051/merck-ec-business-with-about-600-employees-will-transfer-to-basf.html