BASF's Agrochemicals Division Is Preparing to Raise Funds for Listing in the United States or Germany

BASF Group, Germany's largest chemical manufacturer, has asked banks to pitch for the listing of its agrochemicals division, which may be located in the United States or Germany, according to Bloomberg News.

The industrial giant is undergoing a large-scale restructuring plan aimed at reducing costs of more than 2 billion euros a year in Europe as the outlook for Germany's industry deteriorates.

BASF may be listed in the United States or Germany and is expected to hire advisers in the coming weeks, according to people familiar with the matter. BASF declined Reuters' request for comment.

The company's agrochemicals division reported sales of about 10 billion euros ($10.4 billion) in 2023, competing with Bayer, Corteva and Syngenta.

Last September, BASF disclosed plans to list part of its agrochemicals business, citing market underestimation of the division's earnings prospects within the group.

CEO Markus Kamieth told his employees in a global conference call that BASF will also consider strategic options for its coatings business, including potential joint ventures or changes in ownership.