BASF $BAS (+1,69 %) cleans up and sells its building paints business in Brazil to Sherwin-Williams for 1.15 billion US dollars. Why? Because the division hardly fitted in with the rest of the group and was mainly active in Brazil. In short: not a big loss for BASF - but a step in the Group's reorganization.
The chemical giant wants to concentrate more on its core business. What does that mean? Car paints & Co. could be the next to be sold. At the same time, BASF is struggling with high energy costs and weak demand, especially in China. In Ludwigshafen, further cuts are therefore imminent: Plants closed, jobs gone, 1 billion euros to be saved by 2026.
Is this all a clever strategy update or a sign of tougher times ahead? What do you think? 💬
Source: dpa, company information