Veba, Viag to merge chemical units

DUSSELDORF, Germany (May 16)—The German utility groups Veba A.G. and Viag A.G. will merge their chemical subsidiaries into a specialty chemicals company called Degussa A.G. by 2001, ahead of a previously announced merger. Degussa A.G.—which will combine Veba´s chemical group, Degussa-Huls, with SKW Trostberg A.G., owned by Viag—will aim to become the world´s largest specialty chemicals supplier, the companies said. The new firm is expected to double sales to between $16.4 billion and $18.2 billion within the next four years, though the companies expect around 3,000 job losses worldwide, as the streamlined operation seeks cost savings of $273 million by 2004.