The deal, announced last Thursday, will create a consumables group with annual sales of more than 570m. The value of the deal to buy BASF's printing inks and plates arm has not been disclosed, although reports prior to the sale suggest a price of up to 480m.

BASF's print arm will now be merged with the Swedish ink manufacturer ANI, although both the merger and the ANI takeover are still subject to regulatory approval. No timetable has been disclosed for completion of the deals.

The merged firm, which will be headquartered in Stuttgart, will have more than 3,500 staff. It is as yet undecided whether it will keep the BASF brand.

BASF Printing Systems UK managing director Russell Foxley said the acquisition was "a positive step". "It brings consolidation in the industry, which has clearly been the case with customers. Manufacturers are now following suit," he said.

Sun Chemical group managing director Charles Murray welcomed the consolidation but said it will not reduce overcapacity. "It simply reduces the number of players," he said.

Story by Josh Brooks