BASF Gets U.S. Antitrust "OK" for Takeda Merger

BASF Gets U.S. Antitrust "OK" for Takeda Merger

WASHINGTON--The Antitrust Division of the U.S. Department of Justice reportedly had no objections to the proposed merger of Takeda Chemical Industries with BASF AG, according to the companies. BASF, based in Ludwigshafen, Germany, initiated the merger proceedings for Osaka, Japan-based Takeda at the end of July. The European anti-competition agencies still need to give their approval to the deal.

According to BASF, the merger will create a global enterprise controlling approximately 30 percent of the worldwide vitamins market. BASF logged US$500 million in vitamin sales in 1999; Takeda's 1999 sales totaled US$240 million. In the merger, the shares of Takeda Vitamin & Food USA Inc., and its subsidiary, Takeda Canada Vitamin and Food Inc., as well as Takeda Europe GmbH and Takeda Vitamin & Food AsiaPte. Ltd. will be transferred to BASF. As a result of the purchase, BASF will hold a 66-percent stake in Takeda in Japan. Outside of Japan, BASF will be the sole marketer of its products. BASF will also inherit Takeda's process technology and business patents for vitamins B1, B2, B6,C and folic acid.

According to Stephan Reintgen, director of human nutrition at BASF and the team leader on this project, there is no precise date for the European authorities' approval. Each authority has different timelines; however, he reported, approval is expected within the next few months. He noted that the U.S. document said, essentially, that the waiting period is over and the Antitrust Divison had no objections. Now, he said, the companies can legally fulfill what they intend to do. However, he added, "There will be no closing on the merger until all authorities' approval in the major regions is secure." For more information, visit www.basf.com or www.takeda.com.