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BASF TO ACQUIRE MOBIL'S POLYSTYRENE RESIN BUSINESS

 BASF TO ACQUIRE MOBIL'S POLYSTYRENE RESIN BUSINESS
 FAIRFAX, Va., Jan. 16 /PRNewswire/ -- BASF Corporation and Mobil Corporation (NYSE: MOB) announced today the signing of a letter of intent to sell Mobil Chemical Company's polystyrene resin business to BASF.
 The proposed transaction is subject to regulatory clearance as well as approval from the boards of directors of both parties. The parties intend to complete the transaction by the second quarter of 1992. Financial terms were not disclosed.
 Mobil Chemical's polystyrene resin operations have a combined annual capacity of more than 620 million pounds. This includes the 120-million-pound-per-year expansion of high-impact polystyrene capacity, which came on stream in June, 1991, at Joliet, Ill. Other manufacturing plants are located at Santa Ana, Calif., and Holyoke, Mass., with research and development and administrative functions based in Edison, N.J. Mobil's polystyrene resin business includes about 280 employees, who would be offered employment by BASF.
 Mobil Chemical will continue to operate its polystyrene fabricating businesses, which are unaffected by the sale.
 According to Manfred Buller, president of BASF's Polymers Division, "The proposed acquisition would be strategic to BASF's aim of establishing polystyrene production facilities in all major global markets. It would enable the company to serve the relevant industries in North America with a range of quality products."
 Raymond J. McGowan, vice president of Mobil Chemical, said, "We judge our polystyrene resin business, which uses BASF technology, to be among the best in the industry. We were approached several months ago by BASF, who was interested in entering the U.S. polystyrene market. After discussing a number of business arrangements, we concluded a sale was in the best interests of both parties."
 -0- 1/16/92
 /CONTACT: John Lord of Mobil, 703-846-2500; or Beth Mentesana of BASF, 201-316-3722/
 (MOB) CO: BASF Corporation; Mobil Corporation ST: Virginia, New Jersey IN: CHM SU: TNM


JT -- NY043 -- 0461 01/16/92 11:23 EST
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Publication:PR Newswire
Date:Jan 16, 1992
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