German chemical and biotech giant BASF is preparing its agricultural chemicals business for an initial public offering (IPO) in the next few years as part of restructuring measures expected to be announced by the group this month, according to a Reuters report based on a Bloomberg News article.
According to sources quoted in the 18 September Bloomberg report, BASF’s new CEO Markus Kamieth was set to announce a series of overhaul measures – including plans for the future of its coatings business – at a capital markets day on 26-27 September.
While the Agricultural Solutions division was being prepared for a listing, the German firm could also signal its willingness to sell parts of the coatings business or bring in a partner, the report said.
At the time of the report, BASF declined to comment.
According to Bloomberg, BASF could also announce plans for the further development of its battery materials business, with proceeds from the sale of assets used to strengthen the balance sheet.
In December, BASF announced plans to turn its agriculture, battery materials and coatings businesses into standalone units in a bid to boost earnings.
However, at that time the company’s previous CEO Martin Brudermueller was quoted as saying there were no plans to sell the businesses.
BASF’s agricultural unit comprises seeds & traits, crop protection, digital farming, public health, urban & rural pest control, turf & ornamentals and animal nutrition divisions.
The company’s seeds & traits division uses germplasms and trait-technologies designed to improve yields in countries including Brazil, Canada, Europe, the Philippines and the USA.
BASF’s agricultural division focuses on selected crops: wheat, canola (oilseed rape) and sunflower in North America and Europe; soyabeans, corn (maize) and cotton in the Americas; rice in Asia; and fruit and vegetables globally.
Last year, sales at BASF’s Agricultural Solutions unit totalled €10bn (U$11bn), the report said.
Since taking over as CEO, Kamieth has continued his predecessor’s push to reduce BASF’s reliance on subdued European markets, while building a €10bn (U$11bn) chemical complex in southern China to tap into faster growth in Asia, according to the report.
