German chemicals group Degussa said today it has sold its remaining 49-per cent share in Sudsalz to SWS-Alpensalz, a wholly-owned subsidiary of Südwestdeutsche Salzwerke (SWS), based in Heilbronn, Germany. The divestment is part of Degussa's strategy to focus on high-growth speciality chemicals.
Degussa had already reduced its share in Sudsalz - where all its salt activities are pooled - from 64 per cent to 49 per cent in March 2001 at the same time as giving up entrepreneurial management to SWS. Germany's third largest chemical company said it was opening up the possibility of further development for its salt operations as part of a powerful salt supplier outside the Degussa group.
Degussa's renunciation of its majority position in March 2001 was accompanied by a cash offer received from SWS-Alpensalz in connection with a control and profit transfer agreement between SWS-Alpensalz and Sudsalz. This meant that Degussa would be able to sell its 49 per cent holding in Sudsalz to SWS-Alpensalz at a suitable time.
Financial terms of the transaction were not disclosed.
Degussa has sales of €12.9 billion, and in fiscal 2001, generated operating profits (EBITA) of more than €1 billion.