chemical company BASF has acquired the construction chemicals division of rival Degussa for £1.84bn.
The companies, which both have headquarters in Germany and operations in the North-East, expect to close the deal by the middle of the year
"The acquisition allows us to tap into the growth potential of the construction chemicals market on a sustainable basis and will further expand our position in this high-yield industry," said Dr Andreas Kreimeyer of BASF.
"By combining its own chemical expertise with Degussa's know-how in construction chemicals applications, BASF will provide its customers with innovation at the highest level."
BASF employs 207 people at its chemical plant at Seal Sands, Billingham, Teesside.
Degussa's Teesside Fine Organics factory, also at Seal Sands, will not be affected by the acquisition.
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