Styrolution ABS (India) has been on a roll. The stock had hit a hew high yesterday and today too, it is up at a new high at Rs.640. It has since then come off the high though it remains around 3.5% higher at Rs.610.

The stock is up after the company announced that INEOS has agreed to buy its German partner BASF’s 50% share in Styrolution, a JV between the companies - Styrolution was founded in October 2011 as a 50-50 JV between BASF and INEOS, a leading global styrenics supplier. The company has stated in the Press Release that the purchase price to be paid by INEOS will be Euro 1.1 billion. A call option in favor of INEOS to buy BASF's share in Styrolution was already included in the shareholders' agreement signed in 2011.

Post this, Styrolution will continue to operate as an independent company until the completion of the deal, which is expected in the fourth quarter of 2014. After the purchase, Styrolution will be run separately as a standalone company within INEOS, and continue to operate as it does today. The business will be a subsidiary of INEOS Industries Holdings.