Rumors about the sale of BASF’s Coatings Business
Rumors about a possible sale of BASF’s Coatings business, estimated to be worth up to 4.5 billion euros, have intensified in recent days. This business primarily includes paints for cars and repairs, as well as surface treatments. The Dutch company Akzo Nobel is mentioned as a potential buyer, although BASF itself has not confirmed any specific names.
Background and Strategy
The potential sale of the coatings business is part of a larger restructuring plan by BASF. The company recently sold its building paints business in Brazil for approximately 1.15 billion US dollars. These sales are intended to help BASF strengthen its future and navigate out of the current earnings crisis.
Impact on Investors
The rumors surrounding the sale have recently positively influenced BASF’s stock. The stock has recovered by 22 percent from its monthly low, thus outperforming the DAX. Investors are closely monitoring the development as such a sale could have significant implications for BASF’s financial situation and future strategy.
Interest from Akzo Nobel
Akzo Nobel is cited as a serious contender for the coatings business. Strategically, the acquisition would fit well with Akzo, but the timing might be unfavorable due to high debt burdens. Experts like Wim Hoste from KBC Bank have pointed out that Akzo has recently emphasized focusing on its own turnaround and the Asian market.
Conclusion
The potential sale of BASF’s coatings business is a significant event that is of interest to both potential buyers and investors. The development will continue to be closely monitored as it could have substantial effects on BASF’s future direction.