News & Media releases
Basf and Shell review strategic options regarding basell
29/07/2004
London/Ludwigshafen, July 29, 2004 - Shell and BASF announced today that they are reviewing strategic alternatives regarding their joint venture Basell, a global leader in polyolefins, in which they both hold a 50 percent equity interest. The options being reviewed by the shareholders include the sale of their stakes and an equity market transaction. During the review process, the shareholders remain committed to supporting Basell's strategic and operational goals and its ongoing financial progress. Credit Suisse First Boston (CSFB) and Lazard have been retained to assist in assessing the feasibility and attractiveness of these options.
"Merging our polyolefins activities with those of Shell in Basell was a beneficial strategic decision. As an independent company, Basell has integrated and consolidated its businesses in all parts of the world with great success and is now established as a global industry leader. This is the right time to assess the next step", said Dr. John Feldmann, member of the Board of Executive Directors of BASF AG, responsible for the Plastics segment. "BASF, one of the leading global plastics suppliers, will continue to focus its strategic position on styrenics, performance polymers, polyurethanes and their related value chains. The review of options regarding Basell fits well into that strategy."
"Basell has been an important part of the Shell Chemicals portfolio and we have valued our partnership with BASF in this joint venture, " said Fran Keeth, Executive Vice President, Customer Fulfillment and Product Business Units, Shell Chemicals. "In a relatively short period of time, Basell has successfully integrated a valuable set of global assets and achieved economies of scale and other benefits not available to either shareholder separately. Now that Basell has become a global industry leader and is positioned well to compete in a dynamic market environment, it is an appropriate time for us to look at Basell within the context of Shell's long-term portfolio aspirations and to review strategic alternatives to deliver enhanced shareholder value."