BASF contemplates structural changes – investor satisfaction evident
BASF, the foremost chemical company globally, seems to be gearing up for some significant changes, fueling excitement among investors. According to Bloomberg, the current CEO, Markus Kamieth, might reveal plans for an Initial Public Offering (IPO) of their agricultural chemicals division within a couple of years during an upcoming Capital Market Day. This division has been experiencing challenges recently.
Kamieth might also hint at the possibility of selling or partnering up with parts of the coatings business, based on insider rumors. There could be some insights into the future strategies for the battery materials segment as well.
A BASF representative chose not to comment on these rumors, stating, "We don't engage in speculations about market rumors." BASF has scheduled their Capital Market Day for September 26 and 27. The announcement was met positively on the stock market, with shares rising by more than 5% and becoming the DAX's top gainers. The shares peaked at 46.95 euros, marking a 3.5-month high.
Similar to many others in the industry, BASF is grappling with high expenses, weak demand, and low selling prices. Although the company managed to sell more in the second quarter, the adjusted operating result (EBITDA) remained nearly stable at almost 2 billion euros. The revenue decreased by over 7%.
Kamieth's predecessor, Martin Brudermüller, had announced a cost-cutting initiative for their largest integrated site in February, aiming to save 1 billion euros annually. This plan includes workforce reductions. Further details will be disclosed during the upcoming Capital Market Day.
The Commission might be interested in BASF's potential IPO of their agricultural chemicals division, as outlined by Kamieth during the Capital Market Day. Given BASF's challenges in the coatings business, there could be discussions regarding potential sales or partnerships with relevant entities.
