plans to acquire specialty chemical company
for 50 Swiss francs a share.
The board of Ciba, which is based in Basel, Switzerland, supports the offer.
The companies Monday said the offer price is a 32% premium to Ciba's closing price on Friday. The enterprise value of the merger is 6.1 billion Swiss francs ($5.5 billion).
"With the acquisition of Ciba, we are strengthening our portfolio and expanding our leading position in specialty chemicals with products and services for a variety of customer industries, in particular the plastics and coatings industries as well as water treatment, BASF said in a statement.
The transaction would create a leading chemicals company with sales of 62 billion Swiss francs ($88.15 billion) based on 2007 accounts, with BASF accounting for more than 90% of the combined revenue. BASF has 95,000 employees and 100 major factories; Ciba has 13,000 employees and 60 sites,
the Wall Street Journal
This article was written by a staff member of TheStreet.com.