BASF to divest optical brightening agents business, stock falls over 3%

BASF has entered into a business transfer agreement with Archroma India. The shares of the company closed on a negative note, losing 3 per cent at Rs. 1246.

The agreement is to divest the company’s Stilbene-based optical brightening agents (OBA) business to Archroma India for paper and powder detergent applications for an aggregate consideration of Rs 33.50 crore. The transaction is expected to be completed in the fourth quarter of 2019.

The transaction includes Stilbene-based OBA product portfolio and also the manufacturing unit at Ankleshwar, Gujarat. The OBA business is part of the company's performance chemicals and care chemicals divisions.

BASF India is a chemical manufacturing company. It operates in the business segments of agricultural solutions, performance products, plastics businesses and chemicals. The agricultural solutions include insecticides, herbicides, fungicides and specialties.

On Monday, the shares of BASF closed at Rs 1246, down by 3.02 per cent, as against Friday’s close of Rs.1284.85. Its intra-day high was Rs.1285 and intra-day low was Rs. 1220 on the BSE. The 52-week high stood at Rs. 2125 and 52-week low was at Rs. 1180.05 on the BSE.