RAG moves to buy all of Degussa's shares

Düsseldorf, Germany-RAG AG of Essen, Germany, which holds a 50.1 percent interest in filler and chemicals producer Degussa AG, announced 19 Dec that it intends to acquire all remaining shares in Degussa.

RAG and E.ON AG have apparently agreed on the sale of the 42.86 percent of Degussa's capital stock held by E.ON to RPG, with effect from 1 July 2006, said a statement from Degussa.

Some 19 percent of Degussa's annual sales comes from its carbon-black- and silica-producing unit, Coatings and Advanced Fillers.

Degussa said it welcomes the agreement, which "has established a fundamental basis for a stable shareholding structure to continue." But it added that 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 (RPG). RPG will also offer to buy all other Degussa shareholder's shares at Euro 42 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 favourably than the minority shareholders in the subsequent squeeze-out.

The picture shows Professor Utz-Helmuth Felcht, Degussa chairman, speaking at the group's third quarter results meeting in Düsseldorf, 8 Nov.