BASF Streamlines Portfolio with Silicate Sale While Buyback Tranche Nears Expiry
Published on 06/15/2026 at 14:12 | Redaktion boerse-global.de
The chemicals giant is in the midst of a far-reaching restructuring, shedding peripheral businesses to finance a greener production base and sharpen its focus on core operations. The latest move: offloading its DĂĽsseldorf-based silicate unit to US rival PQ, with the deal expected to close in the second half of 2026. Proceeds from the sale will be channelled directly into decarbonising BASF's manufacturing footprint.
Simultaneously, the group is pressing ahead with its agricultural expansion. BASF recently launched the insecticide Efficon in Egypt, targeting resistant pests in high-value crops. North Africa has become a strategic growth region as farmers there grapple intensively with climate stress. The agribusiness segment is being primed for a stock market listing in 2027, and management is deliberately boosting its profitability ahead of that IPO.
This portfolio pruning runs in parallel with the closing chapters of BASF’s first share buyback tranche. Since November 2025, the company has repurchased roughly 27.8 million shares, matching the announced volume of up to €1.5 billion. All bought-back shares have been cancelled, a move that bolsters earnings per share on a mechanical basis. The tranche expires at the end of June, but BASF has yet to reveal a concrete timeline for a follow-up programme.
Should investors sell immediately? Or is it worth buying BASF?
Shareholders have been promised at least €12 billion in combined dividends and buybacks over the 2025–2028 period. The dividend floor stands at €2.25 per share annually, representing around €2 billion per year in payouts. The first tranche was launched two years ahead of schedule, signalling management’s willingness to return cash quickly, but without a clear schedule for the next phase, the multi-billion pledge remains open-ended.
The financial firepower for such distributions is being built through asset divestments. The planned sale of the Coatings division is expected to generate roughly €5.8 billion before tax, providing ample headroom. Yet the operating picture remains patchy. In the first quarter of 2026, EBITDA before special items slipped to €2.356 billion, a decline of €140 million year-on-year. Revenue fell to €16.020 billion, down €488 million from the prior-year period. CFO Dirk Elvermann attributed more than €100 million of the drag to currency headwinds, arguing that without those effects the top line would have matched the previous year’s level.
Cost-cutting is beginning to show results. By the end of March 2026, BASF had already realised savings of roughly €1.9 billion. The group aims to achieve annual cost reductions of €2.3 billion by the end of this year. CEO Markus Kamieth describes 2026 as a transition year, with cost pressure and volatile capacity utilisation weighing on European operations, but the company confirmed its full-year outlook: EBITDA before special items between €6.2 billion and €7.0 billion, and free cash flow in a range of €1.5 billion to €2.3 billion.
At the stock market, BASF shares have been treading water. The equity recently changed hands at around €49.26, virtually unchanged on the day, and has gained a solid 10% since the start of the year. The 200-day moving average of €46.97 provides a reliable floor, while the stock sits roughly 5.4% below its 50-day average of €52.14. The gap to its 52-week high stands at 10.5%. Investors are now waiting for the half-year results, which will test whether the leaner structure can offset persistently weak chemical prices — and whether BASF finally sets out a road map for the next phase of its buyback programme.
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