BASF to prepare agricultural business for IPO, Bloomberg reports

Date:09-19-2024

BASF, opens new tab plans to prepare its agricultural chemicals business for an initial public offering in the next few years as part of restructuring measures set to be announced by the group this month, Bloomberg News reported on Wednesday.

BASF's new CEO, Markus Kamieth, will announce a series of overhaul measures at a capital markets day set for Sept. 26-27, including plans for the future of its coatings business, Bloomberg reported, citing people familiar with the matter.

While the agricultural chemicals business is to be prepared for a listing, the German firm could also signal its willingness to sell parts of the coatings business or bring in a partner.

BASF declined to comment on the report.

"We will publish information on our strategy next week at our capital markets day," a company spokesperson said.

BASF shares were up 3.8% at 1445 GMT, the top gainer in the German DAX index, following the report.

According to Bloomberg, BASF could also announce plans for the further development of its battery materials business.

The proceeds from the sale of assets could be used to strengthen the balance sheet, according to the report.

In December last year, BASF announced plans to turn its agriculture, battery materials and coatings businesses into autonomous units in a bid to boost earnings.

However, previous CEO Martin Brudermueller said at the time that there was no intention to sell these businesses.

BASF's Agricultural Solutions unit had about 10 billion euros in sales last year, competing with Bayer, Corteva, opens new tab and China's Syngenta.

Since taking the top job in April, Kamieth has continued his predecessor's push to reduce BASF's reliance on subdued European markets, while building a 10-billion-euro ($11-billion) chemical complex in southern China to tap into faster growth in Asia.

BASF has said it is slowing down a major investment push for a global manufacturing and recycling network for battery materials amid a downturn in the electric vehicle segment.