On February 12, Reuters reported that BASF SE, Germany's leading chemical company, has invited banks to present proposals for a potential initial public offering of its agricultural chemicals division, potentially in the United States or Germany. The move comes as BASF aims to trim annual costs by over 2 billion euros in Europe amidst a deteriorating industrial landscape in Germany.
According to Bloomberg News, sources familiar with the matter revealed that BASF is expected to enlist advisors in the coming weeks for a possible listing in either the United States or Germany. The company declined to comment when approached by Reuters.
In 2023, BASF's agricultural chemicals unit recorded sales of around 10 billion euros ($10.40 billion), positioning it in competition with Bayer, Corteva, and China's Syngenta. Last September, BASF announced intentions for a partial listing of its agricultural chemicals business, citing an undervaluation of its earnings potential within the group by the market.
Furthermore, the company is contemplating strategic alternatives for its coatings business, which may involve a joint venture or a change in ownership. CEO Markus Kamieth discussed these plans with BASF employees during a global call, the transcript of which was shared with Reuters.
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