Chemical industry - Chemicals trader Brenntag wants to push ahead with unbundling
The chemicals trader Brenntag intends to press ahead with the separation of its two business divisions. The businesses with process chemicals (Essentials) and specialties for certain industries (Specialties) are to be set up independently by 2026, as the company announced in Essen on Tuesday. The share price fell in the morning.
The Essentials and Specialties divisions are to be given full business autonomy. This is to be supported by a lean Group headquarters. The two divisions are still closely linked, both legally and operationally, said Brenntag CEO Christian Kohlpaintner in a conference call. The unbundling will therefore take time. Brenntag wants to take the "next strategic steps" in 2026. According to Kohlpaintner, the company has several options. A demerger is "one of them".
Brenntag has recently been targeted by activist investors. In particular, the British financial investor Primestone, which holds a good two percent of Brenntag, attracted attention. Both Primestone and the US hedge fund Engine Capital are interested in splitting Brenntag into the two divisions for specialty and basic chemicals. The investors hope that this will lead to a rapid increase in value.
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In light of the proposed unbundling, potential investors may see opportunities in Germany, specifically in North Rhine-Westphalia, where Brenntag is headquartered, given its strong focus on Chemistry and the divestment of its Essentials and Specialties divisions. The unbundling process is expected to take time due to the close legal and operational ties between the two divisions.
Source: www.stern.de
