Pharmaceutical and chemical company Merck KGaA (MRK.XE) Tuesday said it's selling its electrolytes business for high-performance batteries to BASF SE (BAS.XE) for a price in the low double-digit million euro range, the third acquisition for BASF in battery technology this year.

"The electrolytes business is in the early phase of its commercialization and has little in common with our other Chemicals activities," said Klaus Bofinger, head of Merck's Advanced Technologies unit, adding that it only meets a fraction of the overall needs of customers who manufacture batteries.

Meanwhile, BASF is positioning itself as a manufacturer of batteries, with its newly formed global Battery Materials unit and two other similar acquisitions this year for a total value of more than $100 million.

Both the companies have agreed not to disclose the financial details of the transaction, which comprises Merck's technologies and products for enhancing battery performance, including the Selectilyte brand and additives for electrolytes used to produce lithium ion batteries.

It also covers Merck's research portfolio of electrolytes and additives.

"This acquisition enhances the expertise we offer to automotive and battery manufacturers around the world," Andreas Kreimeyer of BASF said in a statement.

Last May, BASF said it will form a global electrolytes team to develop and sell high-quality electrolyte formulations for battery manufacturers, which will be integrated into the new Battery Materials unit in the course of 2012.

BASF also said last year that it intends to invest a three-digit million euro sum in researching, developing and producing advanced battery materials over the next five years.

Since then, it invested $50 million to buy a stake in Arizona-based lithium-sulfur battery developer Sion Power Corp. and announced plans to buy Ovonic Battery Co. Inc. from Energy Conversion Devices Inc. (ENER) for about $58 million in cash.

High quality electrolytes--formulations that ensure the transport of electric charge inside a battery--can raise battery performance.

-By Neetha Mahadevan, Dow Jones Newswires; +49 69 2972 5507; neetha.mahadevan@dowjones.com

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