BASF gets EU green light for Cognis purchase
The European Commission approved Tuesday German chemical giant BASF buying specialist chemical company Cognis, on condition it sell off certain activities to avoid competition problems.
BASF, the world's biggest chemical company, agreed to divest production of hydroxy monomers, a chemical product used in coatings and adhesives.
"The proposed transaction, as initially notified, would have created a very strong player in a market where concentration is already high," the European Commission said in a statement.
BASF announced in June its 3.1-billion-euro (4.0 billion dollars) acquisition of Cognis, another German company, to help it focus on high-margin sectors such as personal care products and cosmetics as it diversifies away from its core gas, oil, and plastics activities.
© 2010 AFP