DUSSELDORF, Germany (Dec. 21) — Energy, mining and chemicals holding RAG A.G., which owns 50.1-percent of filler and chemicals producer Degussa A.G., intends to acquire all remaining shares in Degussa in a deal valued at nearly $3.4 billion.
Essen, Germany-based RAG and E.ON A.G. apparently have agreed on the sale of the 49.9 percent of Degussa´s capital stock held by E.ON to an RAG subsidiary, effective July 1, according to a statement from Degussa.
Degussa, which derives about 19 percent of its annual revenues from its carbon black and silica businesses, said it welcomes the agreement, which "has established a fundamental basis for a stable shareholding structure to continue." It will comment further on the offer from RAG once a formal offer tender has been published.
RAG owns the shares in Degussa through its subsidiary RAG Projektgesellschaft mbH, or RPG. RPG will also offer to buy all other Degussa shareholder´s shares at 42 euros per share. Once the public offer has been completed, Degussa points out that RAG intends to launch a squeeze-out of minority shareholders, a move which will be put to a meeting of Degussa shareholders, probably in July 2006.
Degussa said RAG intends to provide an adjustment clause to make sure that shareholders who tender their Degussa shares to RPG under the public offer are not treated less favorably than the minority shareholders in the subsequent squeeze-out.