BASF Reshapes Its Portfolio on Two Fronts as Jefferies Turns Bearish
Published on 11/12/2026 at 22:22 | Editorial boerse-global.de
BASF is pulling in different directions at once. On the same day the German chemicals group unveiled a roughly $1 billion MDI plant in Geismar, Louisiana, it also confirmed it is selling its global mining chemicals business to France's SNF — a pair of moves that, taken together, hand investors a clear valuation puzzle rather than a simple story of growth or retreat.
The disposal, announced alongside the Geismar start-up, follows a strategic review of the Performance Chemicals division. That unit generated about €2.9 billion in sales over the first nine months of 2026, according to Le Figaro, giving a sense of the scale within which management weighed its options. The package being handed to SNF includes the Cork production site in Ireland and roughly 140 employees, and covers chemicals used in leaching, flotation and solvent extraction. Completion is expected in 2027, subject to regulatory approvals and customary closing conditions.
For SNF, the acquisition broadens an existing product range, industry publication Chemical Week reported, adding brands including Luprofroth and LIX to its line-up. BASF, for its part, gains a leaner portfolio — though the financial payoff hinges on a purchase price that has not been disclosed. What matters for valuing the deal is the earnings power of the business being sold and the terms attached to it, not the division-wide revenue figure.
At Geismar, the company formally commissioned the new MDI production facility, lifting the site's annual MDI capacity to around 600,000 tonnes. BASF also raised aniline capacity there, according to media reports. The two announcements therefore mark different stages of the same effort: one shrinks the mining chemicals footprint, the other adds production muscle whose worth will be settled by how profitably it runs.
Should investors sell immediately? Or is it worth buying BASF?
Jefferies Sounds the Alarm
Sentiment on the equity, however, has soured. Jefferies downgraded BASF from "Hold" to "Underperform" yesterday, keeping its price target at €44 and signalling expectations of below-average performance. The shares nonetheless edged 0.6% higher today.
The broker pointed to higher gas prices and a lack of demand recovery as reasons for the cut. For 2027, Jefferies forecasts operating earnings about 5% below consensus — a gap that puts the burden of proof squarely on the company's cost discipline and on the new capacity earning its keep.
Evonik Stands Firm
On the takeover front, Evonik's resistance shows no sign of softening. 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 even after that exchange, and no further meetings are planned.
BASF at a turning point? This analysis reveals what investors need to know now.
Reuters had earlier reported that Evonik turned down a BASF bid of €24 per share. Evonik itself stated that it was not entering takeover negotiations, describing the Saturday contact as purely informational and separate from any deal discussions.
For investors, the picture is one of a group reworking its asset base while facing a more skeptical Street. The portfolio overhaul makes sense if the SNF sale is struck on attractive terms and the expanded plants deliver an adequate return — two conditions that will decide whether the restructuring translates into value.
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BASF Stock: New Analysis - 12 November
Fresh BASF information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
