Dow and BASF Plans to Sell their Styrene Units

Dow Chemical Co. aims to sell Styron Inc, its styrene business by the end of March. Dow is opening Styron’s books for further due diligence to whittle down the number of remaining suitors.

BASF plans to go the same way as it seeks to end an almost 3 year quest to sell unwanted styrene assets. Selling styrene assets will speed up BASF’s move away from less-profitable commodity products at a time when rivals in the Middle East rivals expand capacity. BASF’s styrenics unit generates US$4.2 bln in sales and is expected to be sold for 1-1.5 bln euro. According to information talks are under way with a potential partner for a styrene joint venture, as a prelude to exiting the market. Antitrust rules could prevent European rivals Total SA and Ineos Nova LLC from bidding.