BASF SE – Recent Developments and Market Reaction

BASF SE is a German chemical company listed on Xetra (Ticker: BASF) with a market capitalisation of approximately €38.35 billion. The share price as of 14 October 2025 closed at €42.54, with a 52‑week high of €55.06 and a 52‑week low of €37.40. The company operates across six segments: chemicals, plastics, performance products, functional solutions, agricultural solutions, and oil & gas.

1. Structural Reorganisation – Sale of the Paint Division

On 16 October 2025, BASF announced the divestment of its paint (Lacksparte) to a joint venture consisting of Carlyle and the Qatar Investment Authority (QIA). The transaction is valued at €7.7 billion and is expected to close in the second quarter of 2026.
The sale will generate an inflow of approximately €9.5 billion to the balance sheet, while the company will forgo roughly €5 billion in annual revenue. The decision aligns with a strategy to streamline the business and concentrate on high‑margin specialty chemicals and performance products.

2. Impact on Corporate Value

Analysts from Morningstar and Finanzen.net highlighted that the paint‑division sale is likely to accelerate the company’s valuation. The infusion of cash is expected to strengthen liquidity, while the reduction in lower‑margin revenue will improve operating margins. The move is also seen as a response to increasing regulatory pressure and environmental concerns within the coatings market.

3. Analyst Sentiment – A Polarised View

Following the announcement, a sharp divergence emerged among equity research houses:

The disparity is reflected in the headline “Analysten‑Krieg” reported by Boerse‑Express on 17 October 2025. Citigroup’s upward outlook is based on the anticipated cash‑flow boost and potential cost synergies, whereas Berenberg focuses on the loss of a revenue stream and the uncertainty around the coatings market.

The split has contributed to volatility in the share price, with the stock trading around €42.32 on 15 October 2025 and registering a daily gain of 2.28 % before stabilising near resistance at €42.72.

4. Market Position – DAX Performance

The restructuring has reinforced BASF’s standing within the DAX index. On 12 October 2025, Onvista reported that a positive Citigroup study propelled the shares to the top of the DAX. The company’s strong fundamentals, coupled with the forthcoming cash influx, support its role as a key component of the German blue‑chip index.

5. Financial Snapshot (as of 14 October 2025)

6. Outlook

BASF’s strategic divestiture of its paint business and the resulting cash position are expected to enhance capital allocation flexibility. While the short‑term revenue impact is noticeable, the company’s core segments—especially performance products and specialty chemicals—are projected to deliver stronger profitability. Market participants will monitor the unfolding of the Carlyle‑QIA transaction and the company’s guidance on future capital expenditures.