The European Commission has given the green light for PE producer Elenac S.A. (HQ: 8, rue du Parc, F-67088 Strasbourg), the joint venture of BASF and Shell, to acquire Hostalen Polyethylen GmbH (D-65926 Frankfurt), a spin-off of Hoechst AG. The integration of the business is expected to be concluded by the end of 1998. During December, all Elenac and Hostalen customers are to be informed in detail about production sites, the enlarged portfolio and their new contacts in marketing and technical customer service. Marketing structures will remain unchanged, the company said. The “Hostalen” trademark will be added to Elenac´s existing brand names such as “Lupolen”, “Luflexen”, “Lupolex”, “Lucalen” and “Lucobit”.

With annual sales of DEM 858m (1997) and production capacity of 500,000 t/y of HDPE in Germany and Spain, Hostalen also has an important global licensing business. The takeover of Hostalen will give Elenac total PE production capacity of 1.9m t/y, making it Europe´s number two, ahead of Borealis / PCD. For 1999, it expects total sales of around DEM 4 bn and earnings at the 1998 level. Partners BASF and Shell meanwhile have revealed plans to spend DEM 2.5-3 bn “over the next several years” for improving efficiency and cost control, as well as for global expansion.