BASF plans to sell multiple business lines including parts of its coatings division

News from “German Innovation and Entrepreneurship”, with changes in senior management and sluggish performance, German chemical giant BASF (BASF) is preparing a major sale plan. According to the German media Handelsblatt, Martin Brudermüller, who was still serving as acting CEO seven months before leaving office,
Brudermüller is advancing a plan to sell some of the group’s assets for a total amount of up to 10 billion euros (approximately 78 billion yuan). A BASF spokesman said they do not comment on individual details regarding market rumors and speculation.

Specifically, BASF has four business lines that are “at risk”: First, its oil and gas production subsidiary Wintershall
Dea – BASF had planned to separate from its parent company several years ago. Interested buyers include France’s Total Energy and Norwegian producer Equinor, as well as an Abu Dhabi sovereign wealth fund. BASF holds approximately 73% of the company’s shares. In addition, other businesses that are candidates for sale include the internal combustion automotive catalyst business, parts of the coatings division, and individual plants in the food additives business.

Brudermüller will hand over the position of Chairman of the Management Board after the Annual Shareholders’ Meeting at the end of April 2024, hoping to leave a clear portfolio to his successor. He will then take over as Chairman of the Supervisory Board of Mercedes-Benz in mid-May. According to reports, a decision on BASF’s top successor will be made in December, with the favorite being Markus Kamis
Kamieth, a member of the Management Board responsible for Asia and a close confidant of Brüdermüller. But Melanie Maasbrunner, who is in charge of technology
Maas-Brunner) also has a chance.

BASF suffered huge losses due to the global economic downturn. In the first half of this year, the German listed company’s sales fell by a fifth, and its operating results even fell by more than 40%. On October 31, BASF will release data for the third quarter of this year.

BASF Group’s global revenue in 2022 is 87.3 billion euros, equivalent to approximately 690.9 billion yuan. The chemical giant still has strong growth momentum in the Chinese market. 2022
In 2017, BASF’s sales to customers in Greater China were approximately 11.6 billion euros. BASF has invested more than 9 billion euros in Greater China to date (jointly investing more than 9 billion euros with partners)
13 billion euros), establishing a competitive local production, marketing, sales, technical services and innovation network.