BASF Bids on Ciba

BASF has announced a public tender offer for all outstanding shares of Ciba Holding AG at CHF 50.00 per Ciba share. The offer equates to a premium of 64.3% over the volume-weighted average price of Ciba shares over the last 60 trading days and a premium of 32% over the closing share price on September 12, 2008. Ciba’s board recommends that shareholders accept BASF’s offer and tender their Ciba shares.

“Against the backdrop of increasingly challenging conditions within our industry, this is a transaction that combines a fair price with an industrially compelling solution for Ciba,” said Dr. Armin Meyer, chairman of Ciba. “By joining with BASF and gaining access to its research, production and marketing platform, we will significantly strengthen Ciba’s businesses, especially in the areas of plastics, coatings and paper. BASF has been a Ciba customer and supplier for many years, and it is well acquainted with our people and our business. The acquisition of Ciba by BASF will provide a long-term perspective for profitable growth not only to our Basel site but to our business operations throughout the world.”

According to the companies, Ciba strengthens BASF’s strategy and operations in the field of specialized chemical engineering through its leading innovation capabilities and application expertise in plastics additives, coating effects and water and paper treatment. At the same time, Ciba benefits from BASF’s global research, production and marketing platform, as well as the associated backward integration into important raw materials and intermediates. The two companies already maintain long-standing and extensive supplier and client relationships.

“With the acquisition of Ciba, we are strengthening our portfolio and expanding our leading position in specialty chemicals with products and services for a variety of customer industries, in particular the plastics and coatings industries as well as water treatment, said Dr. Jürgen Hambrecht, chairman of BASF. “Our attractive cash offer gives Ciba shareholders the opportunity to realize the full value of their investment plus a high premium immediately. This transaction meets our acquisition criteria. We expect that it will make a positive contribution to earnings per share in the second year. We look forward to working with Ciba’s highly committed executives and employees. We offer the company and its employees a new home with a long-term, viable perspective. Basel will remain an important site for parts of the combined business, in particular research.”