Rumors About the Sale of BASF’s Coatings Business
Rumors of a potential sale of BASF’s coatings business, estimated to be worth up to 4.5 billion euros, have intensified over the past few days. This business particularly includes paints for cars and repairs as well as surface treatments. The Dutch company Akzo Nobel has been 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 around 1.15 billion US dollars. These sales are intended to help BASF strengthen itself for the future and pull out of the current earnings crisis.
Impact on Investors
The rumors surrounding the sale have positively influenced BASF’s stock recently. The stock has recovered by 22 percent from its monthly low and is thus above the DAX. Investors are watching the development with interest, as such a sale could have significant implications for BASF’s financial situation and future strategy.
Interest from Akzo Nobel
Akzo Nobel is mentioned as a serious contender for the coatings business. Strategically, the business would fit well with Akzo, however, the timing could be unfavorable due to high debt burdens. Experts like Wim Hoste from Bank KBC have pointed out that Akzo has recently emphasized focusing on its own turnaround and its operations in Asia.
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 implications for BASF’s future direction.