BASF's $845 million acquisition of fish oil maker Pronova

Evening Beijing time, German chemical giant BASF announced on Wednesday that it will buy Pronova BioPharma, a Norwegian fish oil maker, for $845 million in search of steady growth in the nutrition market as a complement to its volatile chemical and plastics (9930, -5.00, -0.05%) businessXdN
The deal totals 4,845 million Norwegian kroner ($845 million), including debt of about 1,085 million kronorUnder the terms of the deal, BASF will pay 12.5 Norwegian kroner per pronova share, a 24 percent premium to the stock's average share price over the past six monthsThe company said the deal had the backing of Pronova management and shareholders holding about 60 per cent of the shares, including the largest shareholder, the Herkules private equity fund, which owns 50 per centXdN
However, the deal will require approval from at least 90 per cent of Pronova's shareholders, and details of BASF's offer will be submitted to shareholders around December 5BASF expects the deal to close in the first quarter of next yearXdN
Fish oil is used to make heart disease drugs and food supplementsThe deal, announced Wednesday, is the latest acquisition in the nutrition industry, which has become one of the rare areas in the consumer market to sustain growth in the context of the global economic downturnXdN
As a complement to its core chemical and plastics business, BASF has been making acquisitions in industries less affected by economic volatility The company's existing nutrition and health products business generated revenues of 1.48 billion euros in the first three quarters of this year, accounting for 2.5% of the group's total revenue XdN Beijing time on November 21st night, German chemical giant BASF announced on Wednesday that it will buy Pronova BioPharma, a Norwegian fish oil maker, for $845 million in search of steady growth in the nutrition market as a complement to its volatile chemical and plastics (9930, -5.00, -0.05%) business XdN
　　The deal totals 4,845 million Norwegian kroner ($845 million), including debt of about 1,085 million kronor Under the terms of the deal, BASF will pay 12.5 Norwegian kroner per pronova share, a 24 percent premium to the stock's average share price over the past six months The company said the deal had the backing of Pronova management and shareholders holding about 60 per cent of the shares, including the largest shareholder, the Herkules private equity fund, which owns 50 per cent XdN
　　However, the deal will require approval from at least 90 per cent of Pronova's shareholders, and details of BASF's offer will be submitted to shareholders around December 5 BASF expects the deal to close in the first quarter of next year XdN
　　Fish oil is used to make heart disease drugs and food supplements The deal, announced Wednesday, is the latest acquisition in the nutrition industry, which has become one of the rare areas in the consumer market to sustain growth in the context of the global economic downturn XdN
　　As a complement to its core chemical and plastics business, BASF has been making acquisitions in industries less affected by economic volatility The company's existing nutrition and health products business generated revenues of 1.48 billion euros in the first three quarters of this year, accounting for 2.5% of the group's total revenue XdN (Feather Arrow)