BASF 'tragically' acquired! DuPont, Celanese and other giants make big moves!

In 2020, the epidemic will reduce the demand for foreign trade in the chemical and plastics industry, coupled with the decline in production capacity, the upgrade of personnel entry and exit, cross-border logistics, inspection and quarantine, etc., superimposed on factors such as large fluctuations in the crude oil market and violent fluctuations in the financial market. Many downstream chemical and plastic companies are suffering, and they have become the victims of soaring raw material costs!

The world's leading manufacturers have begun further reorganization to expand their monopoly position in the industry! Within two days, BASF, Celanese, DuPont and other giants successively issued notices announcing the adjustment of their businesses!

BASF's global pigment business was acquired by DIC

On June 30, DIC Co., Ltd. (announced that it has completed the acquisition of the relevant assets and shares of BASF Colors and Effects, the pigment business of BASF, the world’s largest chemical manufacturer, at a price of 1.15 billion euros (approximately 8.8 billion euros). RMB).

Through this acquisition, the product portfolio of both parties will be supplemented. We will further expand our product lineup for displays, cosmetics, coatings, plastics, inks and special applications, and strengthen our position as the world's leading pigment manufacturer. At the same time, we will establish a new system to provide customers with richer products and solutions on a global scale, and accelerate the transformation of DIC Group's pigment business.

After the acquisition, DIC and BASF Color and Effects have more than 30 pigment production facilities around the world. The company's pigment portfolio will provide a wider range of product categories, involving effect pigments, inorganic pigments, organic pigments, specialty dyes and pigment preparations.

DuPont Acquires Laird High-Performance Capacity Company for $15 billion

On July 1, DuPont announced that it had successfully completed the acquisition of Laird Performance Materials for US$2.3 billion (approximately RMB 14.9 billion).

Laird High Performance Materials has become part of the electronic interconnection technology business of the Electronics and Industrial Division. This acquisition will strengthen DuPont’s leading position in the rapidly growing field of advanced electronic applications, supporting high-performance computing, artificial intelligence, 5G communications, Key industry trends such as smart/self-driving cars and the Internet of Things.

As previously announced, Laird Performance Materials will have revenues of US$465 million in 2020 and have approximately 4,300 employees worldwide. It will be integrated into the Interconnect Solutions business of the DuPont Electronics and Industrial Division. . Laird's high-performance materials electromagnetic shielding and thermal management products complement the electronic interconnection technology's product portfolio in flexible board materials, dry films, specialty films and electroplating chemicals.

Jon Kemp, President of DuPont's Electronics and Industrial Division, said that by combining applied materials science expertise with applied engineering capabilities, this acquisition makes DuPont an important partner of major electronic original equipment manufacturers (OEMs). The combined organization will work together. Promote our leadership in accelerating the adoption of high-performance computing, artificial intelligence, 5G communications, smart/autonomous vehicles and the Internet of Things. It also expanded DuPont's product and solution portfolio across the entire electronic value chain, and established the company's expertise in key technologies, which are critical to the realization of next-generation electronic equipment and infrastructure.

Celanese acquires ExxonMobil's elastomer business

Also on June 30, Celanese, the world's leading high-performance engineering plastics manufacturer, announced that it had signed a final agreement to acquire ExxonMobil's Santoprene™ TPV elastomer business. According to the agreement, Celanese will acquire the well-known Santoprene™ brand in the industry as part of its TPV's extensive product portfolio. The acquisition also includes related intellectual property rights, production and commercial assets, and a world-class team.

"This transaction greatly strengthens our existing elastomer product portfolio, allowing us to introduce a wider range of functional solutions to future mobility solutions, medical and sustainability and other target growth areas." Senior Vice President of Engineering Materials Tom Kelly said, “The reputation of the Santoprene™ brand in the TPV field matches well with Celanese’s flagship brand of engineered materials, including Celanese’s Hostaform® polyoxymethylene (POM) and GUR® ultra-high molecular weight polyethylene UHMW-PE. As this product becomes part of the engineering material portfolio and project alternative library, we are confident that our global joint commercial and technical team will generate significant shareholder value."

ExxonMobil’s Santoprene™ business is the world’s leading producer of TPV, serving a variety of end-uses, including automotive, construction, home appliances, medical and industrial. TPV is a chemically cross-linked high-performance material with a unique combination of engineering thermoplastic materials and elastomer properties. The Santoprene™ product portfolio is highly functional for specific application requirements and has industry-leading intellectual property rights.

According to the terms of the final agreement, Celanese will acquire ExxonMobil’s Santoprene™ business for a total price of US$1.15 billion (approximately RMB 7.4 billion) on a cashless and debt-free basis.

Combined with the recent global chemical industry market conditions, it is not difficult to see that although the prices of chemical products have fallen in the second quarter, overall, chemical products still have a large increase this year. Especially in the domestic efforts to cool down, international giants are still adding fire to price increases. Giants such as BASF, Dow, and DuPont frequently issued force majeure notices, delayed delivery notices, and product price hike notices to stimulate the continued rise of chemical products.

Hundreds of price increase letters flooded the chemical market, with one price a day, one single negotiation, and volume inquiries. Various cost pressures caused downstream companies to complain again and again. The various operations such as price increases, market closures, queuing, suspension of sales, auctions, and purchase restrictions have made chemical companies call "too difficult!"

Under this tide of price increases, companies that have no technical barriers and no monopoly nature will be the first to be eliminated. With the integration of their respective businesses, the monopoly advantages of the major giants will be further expanded, and they will have a greater right to speak in the market!