BASF Offloads Mining Chemicals to SNF While Jefferies Turns Bearish on the Stock

BASF has agreed to sell its mining chemicals business to French specialty chemicals group SNF, marking a concrete step in the strategic review of its Performance Chemicals division. The transaction covers roughly 140 employees and a production site in Cork, Ireland, along with a product portfolio spanning leaching aids, flotation reagents and liquid extraction technologies. Closing is expected in 2027, subject to regulatory approvals.

The divestment sits alongside a very different kind of portfolio move. BASF has just officially commissioned a new MDI production plant at its Verbund site in Geismar, Louisiana, following an investment of around USD 1 billion. Annual MDI capacity at the location rises to approximately 600,000 tonnes, a scale the company says makes it North America's leading MDI producer. Aniline capacity at Geismar was expanded as well.

A US Business With Deep Local Roots

The Louisiana expansion builds on an already substantial American footprint. BASF generated sales of EUR 13.1 billion in the US in 2025, with around 90% of that total coming from products manufactured stateside. The two initiatives illustrate the twin tracks of the group's portfolio work: handing the mining chemicals operation to a new owner while deepening its own production base for the polyurethane raw material MDI.

Should investors sell immediately? Or is it worth buying BASF?

Sentiment on the equity, however, has taken a knock. Jefferies downgraded BASF from "Hold" to "Underperform" yesterday, keeping its price target at EUR 44, which implies below-average performance for the shares. The stock was up 0.6% today despite the move. Among the reasons cited by the brokerage were higher gas prices and a lack of recovery in demand. For 2027, Jefferies expects operating earnings 5% below consensus.

Evonik Stands Firm

On the takeover front, Evonik remains opposed to a combination. According to Reuters, the chief executives and finance chiefs of both companies met on Saturday for talks. A person familiar with the matter said Evonik maintained its rejection of BASF's offer after that exchange, and no further meetings are planned. Reuters had previously reported that Evonik turned down a bid of EUR 24 per share. Evonik itself stated that it was not entering takeover negotiations, describing the encounter as purely informational and separate from any deal discussions.

For investors, the coming period hinges on two tangible milestones: securing approval for the SNF sale and capitalising on the expanded production capacity at Geismar. If regulators give the green light and the transaction closes as anticipated, the mining chemicals disposal would advance the restructuring BASF has announced.

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