Degussa Completes Sale of Construction Chemicals Activities to BASF

Wednesday, March 01, 2006

Degussa AG, Dusseldorf, is selling its Construction Chemicals activities to BASF Aktiengesellschaft, Ludwigshafen. The purchase price for the equity (net purchase price) in the activities that are grouped in the Construction Chemicals reporting segment is EUR 2.2 billion. With the debt to be assumed taken into account, the result is a transaction value of more than EUR 2.8 billion.

The aim is for the transaction, which is still subject to the customary approvals, in particular clearance from the regulatory authorities, to be closed by mid-2006.

In fiscal 2004 the Construction Chemicals activities generated sales of EUR 1.8 billion and an EBIT (earnings before interest and taxes) of EUR 201 million. Sales for the first nine months of 2005 came to EUR 1.5 billion and the EBIT was EUR 174 million.Degussa AG, Dusseldorf, today completed the sale of its Construction Chemicals activities to BASF AG, Ludwigshafen. The purchase price has been paid, and amounts to EUR 2.2 billion for the equity (net purchase price). With the debt to be assumed taken into account, the result is a transaction value of more than EUR 2.8 billion.  

Degussa is the global market leader in specialty chemicals. Our business is creating essentials–innovative products and system solutions that make indispensable contri-butions to our customers’ success. In fiscal 2005 around 44,000 employees worldwide generated sales of 11.8 billion euros and operating profits (EBIT) of 940 million euros.    

Corporate Communications

Hannelore Gantzer

Spokeswoman

+49-211-65 041-368