BASF to acquire Solvay's global polyamide business for €1.6bn

BASF has secured a deal to acquire rival Solvay's global polyamide operation for €1.6bn.

The German chemicals giant will strengthen its position in the nylon business with the purchase, allowing it to exploit key markets in Asia and South America.

Solvay's polyamide business generated €1.3bn worth of sales in 2016 and it employs 2,400 workers around the globe.

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The company's decision to sell it off is part of its longer-term strategy to divest its business to focus on applications in the aerospace, automotive and oil and gas industries.

"Solvay’s planned divestment of Polyamides marks a tipping point in the profound transformation journey we began four years ago," said Solvay CEO Jean-Pierre Clamadieu.

"Successful completion of this transaction will further reinforce Solvay as a multi-specialty chemical group, delivering superior growth and sustainable value."

The formalities of the deal are expected to be completed by the third quarter of 2018.