Following the previously reported sale of the coatings business of $BAS (+0,18 %) it appears that the restructuring is continuing to move forward. Financial circles are currently speculating about a valuation of the $BAS (+0,18 %)agricultural division ranging from 20 to 30 billion euros. What is remarkable about this is that $BAS (+0,18 %) the company as a whole is currently valued at only about 45 to 50 billion euros on the stock market. In other words: A business unit that makes up only a portion of the conglomerate could, on its own, be worth nearly half of the current market capitalization.

In my view, this highlights a problem that many large conglomerates face. The stock market often applies a valuation discount (conglomerate discount) to them. Different business segments with varying growth profiles are often valued lower under one umbrella than they would be as standalone companies. This very point was discussed in the latest Handelsblatt podcast. An independently listed agricultural business could therefore command a significantly higher valuation multiple than it would within the $BAS (+0,18 %)group.

Of course, there are also risks. The agricultural division is one of the faster-growing and higher-margin segments of $BAS (+0,18 %) . A partial spin-off could lead to the remaining group being perceived as more cyclical. At the same time, $BAS (+0,18 %) the IPO would bring in fresh capital, while the group would remain the majority shareholder and thus continue to participate in the agricultural division’s future performance. It is precisely this mix of value unlocking and further upside that makes the move interesting, in my view.

Many are also wondering whether existing $BAS (+0,18 %)shareholders will automatically receive shares in the new company. As things stand, that is not planned. $BAS (+0,18 %) The group is planning a partial IPO, will remain the majority shareholder, and has not yet announced any allocation of shares to existing $BAS (+0,18 %)shareholders. Anyone wishing to invest later would likely have to purchase the new shares on the open market.

Personally, I view the planned IPO rather positively so far. If it $BAS (+0,18 %) succeed in reducing the group’s valuation discount while remaining the majority shareholder of an agricultural company valued higher on its own, this could also benefit us $BAS (+0,18 %)shareholders in the long run.

What do you think? Is the group divesting itself of one of its most attractive business units, or do we see a clever move here in the form of an IPO that could lead to a revaluation of both the individual division and the group as a whole?

https://www.merkur.de/wirtschaft/basf-erwartet-megadeal-zahlen-zum-geplanten-boersengang-kursieren-94395652.html

~ Not investment advice ~

$BAS (+0,18 %)

📊 𝐄𝐫𝐠𝐞𝐛𝐧𝐢𝐬𝐬𝐞

• Revenue: €17.2B (+16%, consensus: €16.5B)

• EBITDA before special items: €2.4B (consensus: €2.1B, prior year: €1.6B)

• EBIT before special items: €1.5B (consensus: €1.1B, prior year: €0.7B)

• Net income: €4.1B (consensus: €2.4B, prior year: €79M)

• Free cash flow: -€0.2B (vs. +€0.5B)

⠀

🎯 𝐀𝐮𝐬𝐛𝐥𝐢𝐜𝐤

• EBITDA before special items now expected to be €6.9B–€7.7B (previously: €6.2B–€7.0B)

• Free cash flow still expected to be €1.5B–€2.3B

⠀

📌 Key Points

• Earnings significantly exceed analyst consensus

• Higher prices and sales volumes drive revenue growth

• Gain on disposal from the Coatings transaction contributes significantly to consolidated earnings

• Free cash flow impacted by higher capital tied up due to increased raw material prices

With the completion of the sale of the Coatings division to the new company Surventis, $BAS (+0,18 %) an important step in the “Winning Ways” strategy. $BAS (+0,18 %) It will receive approximately €5.8 billion in cash, while retaining a 40% stake in Surventis. This means the Group is not completely divesting itself of a profitable business but will continue to participate in its future value growth.

In my view, that is precisely the interesting part of the deal. $BAS (+0,18 %) It will be able to focus more strongly on its core business in the future, while simultaneously freeing up capital and still retaining the opportunity to benefit from Surventis’s successful development. Should the company continue to gain value under the new ownership structure, $BAS (+0,18 %) continue to benefit through the 40% stake.

For us shareholders, the key question now will be how $BAS (+0,18 %) the company uses the freed-up funds. Possible options include further debt reduction, investments in the core business, or additional capital returns. In any case, the ongoing share buyback program through 2028 gains additional potential financial flexibility thanks to the inflow of funds.

I therefore view the deal positively overall: $BAS (+0,18 %) it simplifies the group’s structure, strengthens the balance sheet, and at the same time keeps a foot in the door in case Surventis continues to gain value in the coming years.

How do you assess this move? Is it a successful allocation of capital, or would you have preferred a complete sale?

https://www.basf.com/cn/en/media/news-releases/asia-pacific/2026/07/apac-26-74

~ Not investment advice ~

After 20 minutes the video quality improves. Adobe Studio has apparently failed.

YouTube

https://openyoutu.be/rbWcp0BNRK4

Spotify

https://open.spotify.com/episode/6bgZMA0uhfaIkUUcXeP8ed?si=x6H_k9L_Qb2pVzXgMGxuZg

Apple Podcast

https://podcasts.apple.com/de/podcast/146-nvidia-hims-hers-take-two-gta-6-duolingo-thyssen-basf/id1695869891?i=1000769493606

$NVDA (-1,26 %)
$HIMS (-0,78 %)
$DUOL
$BAS (+0,18 %)
$TKA (-0,19 %)
$TTWO (-0,71 %)

$BAS (+0,18 %) presented its quarterly figures and delivered a mixed but slightly better than expected picture overall.

• Turnover (expected): EUR 15.76 billion
• Turnover (reported): EUR 16.02 billion

• EPS (expected): EUR 1.06
• EPS (reported): EUR 1.32

The reported figures were therefore slightly above expectations, while profit was also more stable than feared. Operationally, however, the picture remains challenging. Sales are down slightly year-on-year, mainly due to falling prices and negative currency effects, while sales volumes were even stable to slightly higher in some cases. This clearly shows that the problem currently lies less on the demand side than primarily in price pressure and the weak industrial environment. At the same time $BAS (+0,18 %) At the same time, we were able to stabilize profits thanks to income from investments and internal efficiency measures, among other things, which will provide relief at least in the short term. Overall, the quarter thus confirms the company's current transition phase. The operating basis is in place, but margins remain under pressure. This is particularly evident in the development of the chemicals segments, which are heavily dependent on energy and raw material costs as well as global industrial demand.

In this context, the role of $BAS (+0,18 %) as an early indicator of economic development, particularly in Germany. The chemical industry is at the beginning of many value chains, which is why rising demand is often the first sign of an economic recovery. At present, however, only cautious signs of stabilization can be seen here. The slight increase in volumes suggests that industrial demand is not collapsing any further, but there is still no sign of a clear, broad-based recovery. On the contrary, the continuing price pressure shows that the environment remains weak and that companies have not yet regained their pricing power.

For me, the decisive factor in the coming quarters will be whether $BAS (+0,18 %) whether it will be possible to stabilize the ongoing price pressure and at the same time benefit from a possible recovery in industrial demand (particularly in China). Equally important for me is the extent to which the ongoing cost and restructuring programs actually have an impact on profitability. In my opinion, the development of energy prices will also continue to play a key role. Overall, the big question for me remains whether this is already the start of a cyclical recovery in the chemical sector or whether we are only seeing a short-term stabilization in a persistently difficult environment.

https://de.investing.com/news/economy-news/roundup-2wettbewerbsdruck-basf-setzt-im-quartal-weniger-um-3454528

~ No investment advice ~

$VZ (+1,53 %)
$DPZ (-0,7 %)
$CDNS (-11,69 %)
$BARC (-1,44 %)
$SPOT (-0,43 %)
$BP. (+1,64 %)
$SPGI (-1,22 %)
$KO (-0,29 %)
$UPS (+0,69 %)
$AIR (-0,83 %)
$SBUX (-0,8 %)
$ENPH (+1,07 %)
$NXPI (-1,79 %)
$STX (+0,92 %)
$BE (+2,75 %)
$V (-1,37 %)
$MDLZ (+1,45 %)
$HOOD (-3,6 %)
$MBG (-0,43 %)
$UBSG (-1,14 %)
$DBK (-2,5 %)
$LMND (+1,22 %)
$SOFI (-2,76 %)
$TER (-2,25 %)
$ADS (-0,54 %)
$ABBV (+1,28 %)
$G24 (-2,53 %)
$WM (+0,28 %)
$APH (-0,58 %)
$CMG (+2,93 %)
$GOOG (-2,98 %)
$META (-4,34 %)
$MSFT (-2,21 %)
$AMZN (-0,46 %)
$005930
$BAS (+0,18 %)
$SU (-0,94 %)
$INGA (-1,78 %)
$ULVR (+0,82 %)
$IDR (+1,57 %)
$DHL (-0,63 %)
$CAT (+0,2 %)
$MA (-0,73 %)
$PUM (-1,58 %)
$MRK (+2,29 %)
$CNHI (+0,48 %)
$LLY (+0,98 %)
$FSLR (-0,7 %)
$WDC (-0,62 %)
$RBLX (-3,18 %)
$RDDT (-1,85 %)
$SNDK (+2,43 %)
$AAPL (-0,08 %)
$TWLO (+1,24 %)
$EL (-0,22 %)
$CL (+0,82 %)
$XOM (+1,55 %)
$CVX (+1,78 %)

15 increases

13 unchanged

7 reductions

Insurance companies

Banks

Utilities

Car stocks

Type here if you like collecting dividends: https://shorturl.at/83W8R

$MBG (-0,43 %)
$ALV (+1,06 %)
$VOW3 (-0,26 %)
$MUV2 (+1,03 %)
$BMW (-0,46 %)
$AIR (-0,83 %)
$CBK (-2,75 %)
$523232
$DTG (-0,52 %)
$DHL (-0,63 %)
$FME (+0,57 %)
$FRE (+0 %)
$HNR1 (+1,15 %)
$MTX (-0,8 %)
$RHM (+2,4 %)
$SAP (-1,59 %)
$ENR (+0,35 %)
$BAS (+0,18 %)
$BAYN (+1,45 %)
$BEI (-0,08 %)
$DBK (-2,5 %)
$DTE (+1,7 %)
$EOAN (+1,71 %)
$GEA (-0,6 %)
$IFX (-0,59 %)
$RWE (+0,78 %)
$SY1 (-0,93 %)
$ZAL (-0,61 %)
$ADS (-0,54 %)
$BNR (-0,45 %)
$HEN (+0,11 %)
$MRK (+2,29 %)
$SIE (-1,8 %)
$SHL (+0,75 %)

four months after the follow-up purchase. New subsidies, tax cuts and a good forecast have brought the share close to a 52-week high. I am now securing profits before there is a possible gas emergency in Germany in April. The Federal Network Agency is preparing to declare an "alert level" (stage 2 of the gas emergency plan). From April, the first cuts could be made for large industrial consumers in order to ensure that storage is filled for the next winter despite the import ban. BASF would be affected as it requires a minimum load (often around 50%) for its complex chemical Verbund sites. If the allocation falls below this, there is a risk of irreparable damage to the plants. It has been a long time since I traded a German share. $BAS (+0,18 %)

As every Sunday, the most important news from the past week, as well as the most important dates for the coming week.

Also as a video:

https://youtube.com/shorts/Xj-PxHireLQ?is=d23V3gOV-iu4Mmpy

Monday:

Defense instead of cars, for a $VOW (-0,2 %) VW plant in Osnabrück, this seems to be a real option. In the future, parts for the Irondome could be manufactured here in cooperation with the Israeli defense company Rafael.

https://www.handelsblatt.com/unternehmen/industrie/ruestung-volkswagen-koennte-iron-dome-teile-in-osnabrueck-herstellen/100211392.html

Tuesday:

US economic activity has fallen to an 11-month low amid the Iran war due to high prices. Higher energy costs in particular are unsettling economic players in the USA.

https://www.reuters.com/business/us-business-activity-slips-11-month-low-march-amid-iran-war-sp-global-survey-2026-03-24/

Wednesday:

The situation in Germany is also deteriorating due to the war in Iran. The ifo business climate index has fallen to its lowest level for a year. Industry in particular is suffering from the rise in energy costs. According to the ifo Institute, economic growth at the end of the first quarter is therefore likely to be no more than 0.1%.

https://www.zeit.de/wirtschaft/2026-03/ifo-index-wirtschaft-rueckgang-aufschwung-irankrieg

Thursday:

The new $BAS (+0,18 %) BASF plant in Zhanjiang, China was opened. Instead of the planned 10 billion euros, it cost just over 8 billion euros. The big advantage of the new plant is the steam cracker, which also runs on butane gas and is therefore not dependent on the now scarce oil distillate naphtha.

https://www.handelsblatt.com/unternehmen/industrie/industrie-in-china-dieses-neue-werk-entscheidet-ueber-die-zukunft-von-basf/100211220.html

The most important dates for the coming week:

Monday: 14:00 Inflation data (DE)

Wednesday: 16:00 ISM Manufacturing (USA)

Friday: 14:30 Labor market data (USA)

#inflation
#verbraucher
#industrie
#usa
#deutschland

Can you think of any other dates?

$BAS (+0,18 %)

...and I will be selling soon?

The newly built Verbund site in Zhanjiang, Guangdong Province in southern China, with an area of around four square kilometers, is more than just a major project for BASF in the growth market of China.

Zanjiang shows what the future of chemistry looks like: efficient, digital and consciously sustainable from the outset. The site demonstrates a smart integrated Verbund structure on an industrial scale," said Markus Kamieth, Chairman of the Board of Executive Directors of BASF, at the ceremony, which was attended by government representatives, customers, business partners and employees.

At the Zhanjiang site, BASF employs more than 2,000 people and will produce a diversified portfolio that includes basic chemicals, intermediates and specialty chemicals for the transportation, consumer goods, electronics, household cleaning and personal care sectors.

"Getting this site up and running required the determination, speed and exceptional commitment of our BASF team. Completing a project of this magnitude on time and under budget is remarkable - and I would like to thank everyone involved both locally and globally who made it possible," said Kamieth. "This investment demonstrates long-term confidence in the world's largest chemical market and is an important building block in our 'Winning Ways' strategy," he added.

The majority of the products manufactured in Zhanjiang will be supplied directly to customers in China, in line with BASF's local-for-local strategy worldwide. The project was completed on time and well below the original budget; the investment amounts to around EUR 8.7 billion.

"I am proud of BASF's innovative strength, which forms the basis for the launch of the most sustainable integrated chemical site in China," said Stephan Kothrade, Member of the Board of Executive Directors and Chief Technology Officer of BASF, who is responsible for the Asia-Pacific region. "It sets new standards for sustainable chemical production in China and worldwide," said Kothrade.

By using Verbund integration, process innovations and renewable energy, CO2 emissions at the Zhanjiang site can be reduced by up to 50% compared to a conventional petrochemical site. Long-term green power purchase agreements and investments in an offshore wind farm ensure that the plant's power supply is 100% renewable. "Innovative technologies are also used for the steam cracker - the starting point for various value chains in the network," says Kothrade. The steam cracker has a capacity of 1 million tons of ethylene per year and is the world's first cracker whose main compressors (e-drives) are powered 100% by renewable energy, which supports the production of high-quality, low-CO2 products. The flex-feed steam cracker is designed to process various feedstocks such as naphtha.

BASF has successfully ramped up 18 plants at the Zhanjiang site, put 32 production lines into operation and manufactures more than 70 products there. With its proven Verbund concept and long value chains, BASF offers a broad, highly diversified product portfolio from the Chemicals, Materials and Nutrition & Care segments. Integration and scaling enable competitive cost positions, significantly lower CO₂ emissions and a reliable supply for numerous sales markets. "This makes us an attractive partner for our customers in China," says Haryono Lim, President, Mega Projects Asia, BASF. "Together with customers and partners, we will drive innovation and transformation in one of China's most economically dynamic regions," adds Lim. The site therefore provides an important platform for BASF's future growth in China.

BASF announced the Zhanjiang project in 2018 and laid the foundation stone the following year. The first plant to go into operation at the Zhanjiang site was a production plant for engineering plastics in 2022, followed by a plant for the production of thermoplastic polyurethanes in 2024. At the turn of the year 2025/2026, BASF started production of the first value chains in the Verbund and successfully ramped up the steam cracker in record time. Zhanjiang is BASF's seventh Verbund site worldwide and the third largest after Ludwigshafen (Germany) and Antwerp (Belgium). It is operated entirely under the responsibility of BASF. BASF has been operating in Greater China for over 140 years. Today, BASF serves almost all major industries in the region. BASF has a strong production, distribution and innovation presence in China with major sites in Shanghai, Nanjing, Chongqing and Zhanjiang as well as numerous smaller plants across the country. In 2025, BASF generated sales of around EUR 8.2 billion with customers in Greater China and employed almost 13,000 people.