In Short

A round-up of today's other business news in brief

BASF plans huge cutbacks

BASF, the world's largest chemicals maker by revenue, cut its profit outlook for 2008 and announced cutbacks in production, citing a "massive" decline in demand in key industries.

The previous year's earnings before interest and taxes (EBIT) before special items would not be reached, the group said today, adding it would temporarily shut down 80 plants worldwide and reduce production at a total of about 100 plants.

BASF had said last month it would "make every effort to match" last years EBIT before special items.

Some 20,000 employees would be affected by the production cuts, of which about 5,000 are at its main site in Ludwigshafen, southern Germany, the company said today.

It said it was difficult to foresee how 2009 would develop and that it would prepare for "tough times". - (Reuters)

Ovoca Gold has agreed to sell  its Ayax unit for $31 million

Precious metals exploration company Ovoca Gold has agreed to sell its Ayax unit for $31 million in cash and stock to Russian silver producer OAO Polymetal.

The Dublin-listed firm said Ayax owns the interests to the Goltsovoye silver deposit which is 81kms from Polymetals Dukat processing plant.

The payment includes $11 million in cash and 7.5 million JSC Polymetal ordinary shares, which had a market price of $2.67 million, giving a value of €24.5 million to the deal.

"Goltsovoye represents a unique opportunity to add high grade silver resources literally in Dukat's backyard," chief executive officer of OAO Polymetal Vitaly Nesis said in a statement.

NTR plans to invest €1m in biofuel development plan

Utility NTR is planning to invest €1 million in a venture aimed at commercialising algae for use in biofuel development.

The Irish company is joining forces with US partner Green Plains Renewable Energy (GPRE) to invest in the algae production venture.

It is understood that each will invest $1.4 million (€1 million) in the project.

Commenting on the deal, NTR chief executive Jim Barry said the group sees the venture "as being an important commitment on our part to advancing understanding of the possibilities of commercial production of algae as an alternative biofuel and as a carbon sequestration agent".

InBev seals deal for Bud 

InBev has closed its purchase of US brewer Anheuser-Busch Inc to create the world's largest brewer in the biggest cash acquisition in history.

As of yesterday, the maker of Stella Artois and Beck's will be known as Anheuser-Busch InBev. Its shares will trade on the Euronext Brussels stock exchange under a new symbol, ABI, starting today.

Shares of Anheuser-Busch, maker of Budweiser and Michelob, have ceased trading on the New York Stock Exchange pending their acquisition by InBev for $70 per share, or a total of $52 billion.

The combined company will brew about a quarter of the worlds beer and generate about $36 billion in annual sales, helping regain its position as the worlds top brewer. It lost the title last year to London-listed SABMiller.

Belgium-based InBev, known for fierce cost-cutting, must now deliver on its ambitious promises. - (Reuters)