BASF excludes two India units from Archroma deal.

BASF, the world's largest chemical company, has decided to exclude its plants in Thane and Mangalore from a deal it has reached with Swiss chemicals maker Archroma to sell its global textile business for an undisclosed amount.

Archroma is a portfolio company of SK Capital Partners, a private investment firm with a focus on specialty materials, chemicals and the healthcare sector.

Responding to a BusinessLine questionnaire, BASF said: 'We have long-term supply agreements for certain textile chemicals with Archroma. Lab facilities are also excluded from the transaction, but all lab equipment belonging to the textile chemicals, research and development, and an application lab would be transferred.'

BASF India would also transfer 30 employees working for the textile chemicals business to Archroma.

'Archroma will offer an employment contract to all the affected employees. It would be the endeavour of both Archroma and BASF to find the best possible solution for these employees,' the company added.

The transaction is subject to approval by antitrust authorities, and the closing is expected to take place in the first quarter of 2015.


HBL