August 7, 2007

European Commission approves joint venture for Lustran Polymers business

Now the path is clear for the partnership with Ineos.

The European Commission, after assessing the LANXESS proposal to transfer Business Unit Lustran Polymers into a joint venture with Ineos, concluded that this is not going to detriment competition within the European economic region.

The plan has also been approved by the US Federal Trade Commission and Turkey's antitrust authority, completing all antitrust authorizations required for the move and enabling LANXESS to expect that the transaction will become legally effective as planned by October 1st, 2007.

The future majority shareholder, Ineos, has already announced that the joint venture, after the transaction has become effective, will trade as "Ineos ABS" under the leadership of CEO Gerd Franken, currently Chairman of the executive management of Ineos Köln GmbH.

LANXESS is about to contribute its Lustran Polymers business with an annual turnover of €900m and 1,600 employees to the joint venture, initially retaining 49 percent of the shares with the aim to withdraw completely after a period of two years.