Last Update: 03/11/2010
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Part of the audited Consolidated Financial Statements and Management´s Analysis

Integration of Ciba

  • Acquisition of Ciba Holding AG on April 9, 2009
  • Acquired Ciba businesses primarily integrated into the Performance Products segment
  • Rapid integration of Ciba, faster than planned in some areas: integration costs of €785 million in 2009, of which around €150 million were cash costs
  • From the end of 2012 at the latest, synergies are expected to be more than €450 million annually

BASF acquired Ciba Holding AG on April 9, 2009. Almost all of the Ciba businesses have been integrated into the Performance Products segment. To prepare for the realization of the integration, the segment’s divisions had already been reorganized as of April 1, 2009. In addition to the three existing divisions, the new Paper Chemicals division was established, which includes BASF’s business with paper chemicals, binders and kaolin minerals and since mid-2009 all of Ciba’s paper activities. The Acrylics & Dispersions division was fundamentally reorganized and renamed Dispersions & Pigments. This operating division now combines BASF’s and Ciba’s businesses with raw materials for the coatings and paints industry. Ciba’s businesses with plastic additives and water treatment chemicals as well as others were assigned to the Performance Chemicals division. We also expanded the Care Chemicals portfolio with the integration of Ciba. The segment now comprises the divisions Dispersions & Pigments, Care Chemicals, Paper Chemicals and Performance Chemicals.

The integration of the businesses acquired from Ciba into the various divisions is proceeding rapidly, even faster than planned in some areas. In July 2009, the implementation phase began, which includes the introduction of BASF IT systems, the transfer of central functions such as human resources and finance to BASF service platforms and the consolidation of company structures and operating sites. All the essential structural integration measures are expected to be completed by April 2010.

As a result of the rapid integration, a major share of the related costs was incurred in 2009. For the full year 2009, the negative impact on earnings was €785 million, of which around €150 million were cash costs. From the end of 2012 at the latest, we expect the combined business to generate synergies of more than €450 million per year. We expect to achieve recurring annual savings of €350 million by the end of 2010.

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