BASF’s $10 Billion Agrochemicals Business Plans IPO, Coatings Business May Be Sacrificed, Stock Price Soars 3.8%!

Chemical giant BASF is planning an initial public offering of its agrochemicals business in the next few years as part of an upcoming restructuring plan, Bloomberg News reported. BASF's new CEO Markus Kamieth is expected to unveil a series of reforms at the company's capital markets day on Sept. 26-27, including a future strategy for the coatings business.

While the agrochemicals business is preparing to go public, the company could also signal an intention to sell part of its coatings business or seek a partner. BASF declined to comment on the report. "We will announce details about our strategy at our capital markets day next week," a company spokesman said.

BASF shares were up 3.8 percent at 1445 GMT after the report, making them the top gainer on Germany's DAX index.

Bloomberg also reported that BASF may announce plans to further develop its battery materials business. Proceeds from the sale are said to be used to strengthen the company's balance sheet. In December, BASF announced plans to turn its agriculture, battery materials and coatings businesses into independent subsidiaries to boost profitability. However, former CEO Martin Brudmuller has made it clear that the company has no plans to sell these businesses.

BASF's agricultural solutions unit had sales of about 10 billion euros last year and competes with rivals such as Bayer and Corteva as well as China's Syngenta. Since taking over in April, Kamis has continued the work of his predecessor to reduce BASF's dependence on the European market and build a 10 billion euro ($11 billion) chemical complex in southern China to take advantage of rapid growth opportunities in Asia.

BASF said it is slowing major investments in its global battery material manufacturing and recycling network against the backdrop of a weak electric vehicle market.