Degussa ownership may change hands
German mining and engineering company RAG, which holds a 50.1% interest in global speciality chemicals business Degussa through its wholly-owned subsidiary RAG Projektgesellschaft (RPG), plans to acquire all remaining Degussa shares. Degussa has welcomed the move.
German mining and engineering company RAG, which holds a 50.1% interest in global speciality chemicals business Degussa through its wholly-owned subsidiary RAG Projektgesellschaft (RPG), plans to acquire all remaining Degussa shares. Degussa has welcomed the move.
Subject to approval of the relevant German authorities, energy group E.ON will divest its 42.86% share in Degussa to RPG on July 1, 2006. At the same time, RAG intends to make a voluntary public offer to all other Degussa shareholders via RPG to acquire their shares at a price of €42 per share.
Once the public offer has been completed, RAG intends to launch a squeeze-out of minority shareholders in Degussa in accordance with the German Stock Corporation Act. A judgement on whether the deal will be allowed to go ahead is expected from the German authorities in July.