Swiss-based multinational chemical company Ineos is to buy out BASF's 50-percent stake in Styrolution — the joint venture formed by the two companies in 2011. BASF's shares in the company will be bought for EUR1.1 billion ($1.5 billion), Ineos announced.

The Anglo-Swiss company is seeking to enhance its business in Asia and is focusing on expanding its portfolio in specialty products. After the deal closes Ineos will become the sole owner of Styrolution, a manufacturer of styrene monomer, polystyrene, ABS Standard and styrenic specialties. It has 17 production facilities located in 10 countries and employs about 3,200 people.

The option for Ineos to buy BASF's stake was one of the conditions included in the agreement that created Styrolution. According to Calum Maclean, a director at Ineos, the company had always intended to take full control of the joint venture. Over the past three years Styrolution has fared very well, even though it had to operate in tough market conditions. It managed to consolidate and deliver synergies, but now it's time to shift the focus onto investment, he told the Financial Times.

Jim Ratcliffe, chairman of Ineos Capital, commented that Styrolution has successfully competed with large producers from Asia and the Middle East. The company will continue to run as it has done so far and will function as a standalone company within Ineos, he stated.