RAG Aims to Own All of Degussa


RAG Aktiengesellschaft, the majority shareholder in Degussa AG, announced last week a plan to achieve full ownership of the specialty chemical supplier by July. A Degussa spokeswoman said it is too early to say how the transaction might affect its subsidiary, lubricant additive maker RohMax.

Announced Dec. 19, RAGs plan calls for it pay 2.8 billion (U.S. $3.3 billion) to buy the 42.9 percent stake in Degussa now owned by E.ON AG. In addition, RAG aims to buy outstanding shares of Degussa stock – which amount to just over 7 percent of the company – for 42 per share. The latter value is 10.5 higher than the per-share price being paid to E.ON.

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Based in Essen, Germany, RAG is a 19 billion conglomerate involved in energy, chemicals, mining and real estate. It bought its current stake in Degussa in 2003 and 2004. Before that, E.ON and the public owned shares of 65 percent and 35 percent, respectively.

Degussa, which is headquartered in Dusseldorf, Germany, had 11.2 billion in revenue in 2004. One of its subsidiaries, Rohm GmbH, owns RohMax, which supplies specialty chemicals such as viscosity index improvers and pour-point depressants used in automotive and industrial lubricants. Another subsidiary, Goldschmidt Chemical, manufactures fatty acid amides and esters used in metalworking fluids.

Degussa spokeswoman Hannelore Gantzer told Lube Report yesterday, The transactions are not due to be completed until July, so it is too early to say what effect it will have on RohMax.

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