VEBA / HÜLS
Divesture of Hüls Troisdorf AG / Takeover by Rütgerswerke
According to Ulrich Hartmann, Chairman of the Board of Veba AG (PO Box 301051, D-40410 Düsseldorf), Hüls AG (D-45743 Marl), a subsidiary company of the Veba Group, intends to divest Hüls Troisdorf AG (PO Box 1165, D-53821 Troisdorf) to Rütgerswerke AG (Mainzer Landstr. 217, D-60326 Frankfurt). In exchange Hüls will receive a 25% share of Phenolchemie AG (Dechenstr. 3, D-45966 Gladbeck). In addition, compensation will be paid, but to whom and to what extent has not yet been disclosed. Hartmann hopes that the transaction will be finalized by January 1, 1994. Although agreement in principle has been reached, a number of detailed points must still be cleared up. A decision must still be taken by the supervisory board as well as by the monopolies commission.
Hüls plastics production is concentrated in Hüls Troisdorf AG (profiles, industrial subassemblies, sealing and insulation materials). Annual turnover is DM 867m with 3,500 employees. Hüls already has a 50% stake in Phenolchemie, and this would rise to 75% if the deal goes through. Harpener AG, Dortmund, owes the remaining 25%. Hartmann is ready to hold discussions, if Harpener is interested in giving up its stake.
The background for the transaction is as follows: Ruhrkohle AG (D-45117 Essen) owns 83% of Rütgerswerke; Veba is the largest single shareholder of Ruhrkohle with a 40% share. Within Veba, there is a strong opinion that the "swop" will not lead to a separation of Veba from Hüls but that rather this is a necessary restructuring which will allow both Hüls' plastics business and Veba's chemical business to become profitable in the medium-term.
When it has taken over Hüls-Troisdorf, the Rütgers Concern, which includes Isola Werke AG, RÜFAS Rütgers Fahrzeug-Systemtechnik AG and Vedag GmbH, will be one of the largest European plastics processors.
Nevertheless: Rütgers reported losses in all of the business areas in 1993. Hüls-Troisdorf had to swallow a loss of DM 9m during the last operative business year. One wonders if and when the two firms can become synergistic, and whether or not limitations or conflicting interests will arise within the product portfolio. Veba chief Hartmann certainly created a sensation with this announcement as there had been no mention of these plans during Rütgers autumn press conference.
Hüls plastics production is concentrated in Hüls Troisdorf AG (profiles, industrial subassemblies, sealing and insulation materials). Annual turnover is DM 867m with 3,500 employees. Hüls already has a 50% stake in Phenolchemie, and this would rise to 75% if the deal goes through. Harpener AG, Dortmund, owes the remaining 25%. Hartmann is ready to hold discussions, if Harpener is interested in giving up its stake.
The background for the transaction is as follows: Ruhrkohle AG (D-45117 Essen) owns 83% of Rütgerswerke; Veba is the largest single shareholder of Ruhrkohle with a 40% share. Within Veba, there is a strong opinion that the "swop" will not lead to a separation of Veba from Hüls but that rather this is a necessary restructuring which will allow both Hüls' plastics business and Veba's chemical business to become profitable in the medium-term.
When it has taken over Hüls-Troisdorf, the Rütgers Concern, which includes Isola Werke AG, RÜFAS Rütgers Fahrzeug-Systemtechnik AG and Vedag GmbH, will be one of the largest European plastics processors.
Nevertheless: Rütgers reported losses in all of the business areas in 1993. Hüls-Troisdorf had to swallow a loss of DM 9m during the last operative business year. One wonders if and when the two firms can become synergistic, and whether or not limitations or conflicting interests will arise within the product portfolio. Veba chief Hartmann certainly created a sensation with this announcement as there had been no mention of these plans during Rütgers autumn press conference.
15.01.1994 Plasteurope.com [21633]
Published on 15.01.1994