BASF to Acquire Pronova For 664 Million

LUDWIGSHAFEN, GermanyBASF announced plans to acquire Norway-based Pronova BioPharma ASA for approximately 664 million, a move that will vault BASF into a leading position in the omega-3 fatty acid market. The deal, subject to customary closing conditions and necessary regulatory approvals, is expected to be finalized in the first quarter 2013.

The intended acquisition will significantly strengthen our position in the fast growing and highly profitable market for omega-3 fatty acids. We want to combine the global market reach and experience of BASF with the know-how of Pronova in omega-3 fatty acids," said Michael Heinz, Member of the Board of Executive Directors of BASF SE and responsible for the Performance Products segment, which includes the Nutrition & Health division.

Highly concentrated omega-3 fatty acids are a globally growing market, driven by an increasing consumer awareness of omega-3 fatty acids health benefits. With the acquisition of Pronova BASF will immediately achieve a leading position in the global market for omega-3 fatty acids. Pronovas active pharmaceutical ingredients are used to treat cardiovascular diseases, such as post-myocardial infarction. In nutritional applications, including dietary supplements, there is a strong body of evidence supporting a broad range of positive health benefits through omega-3 fatty acids, for example, in the areas of cognitive development or heart health.

In May 2012, BASF announced the acquisition of Equateq Ltd., a global leader in the manufacturing of highly concentrated omega-3 fatty acids, for an undisclosed amount. The transaction strengthened BASFs position as leading supplier of ingredients for the nutrition and health industries.

At the end of 2011 BASF Plant Science announced an agreement with Cargill, an international producer and marketer of food, to co-develop a new dietary source of EPA/DHA omega-3 fatty acid available by the end of the decade.