BASF is threading a needle of portfolio reshaping and forward-looking investment. The chemical giant secured European Commission approval for the €7.7 billion sale of its coatings business to private equity firm Carlyle, while simultaneously deepening its ties with US recycling specialist Encina Development Group. The two moves, announced within weeks of each other, underscore a strategy of shedding non-core assets and locking in circular supply chains.
The EU clearance came with a condition: Carlyle must divest the polysulfide business of Nouryon, a separate chemical producer, to address competition concerns. Once that sale is completed, the transaction – originally unveiled in October 2025 – can close. Under the terms, BASF will retain a 40% stake in the coatings unit and expects a pre-tax cash inflow of €5.8 billion. That minority holding means the Ludwigshafen-based group will continue to share in the division’s performance even after ceding control.
On the recycling front, BASF has expanded its partnership with Encina beyond a simple supply agreement. The new deal gives BASF the right to become an equity partner in a planned large-scale chemical recycling plant on the US Gulf Coast. The facility is designed to produce chemically recycled benzene for BASF’s “Ccycled” product portfolio. Before a final investment decision is taken, BASF is advising Encina on procurement strategy and project planning. An initial supply contract for recycled benzene was already signed in June 2024.
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Alongside these external moves, BASF is returning capital to shareholders. In the final week of May, the company repurchased 950,000 of its own shares, bringing the total bought back under the current €1.5 billion programme to roughly 27.8 million shares. The buyback is scheduled to run through June 2026. Internally, finance chief Julia Raquet is spearheading “CoreShift”, a cost-reduction programme targeting a 20% cut in fixed costs across core segments by 2029, based on 2024 levels.
Investors have taken a mixed view. The stock recently traded at €50.48, down slightly on the day, and has gained 12.83% since the start of the year. That is below the 52-week high of €55.05 hit in mid-April, which puts the current price about 7.5% off the peak. Over a full 12-month horizon, the shares have risen roughly 21%. The 200-day moving average stands at €46.82, well below today’s level, while the Relative Strength Index of 41.9 points to a neutral stance.
Looking ahead, management will host a virtual deep dive on the Zhanjiang integrated site on 8 June, followed by the half-year financial report in July. The coatings sale is expected to close once Carlyle completes the mandated Nouryon disposal, a timeline that depends on how quickly that separate divestiture can be executed.
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