BASF Explores US Listing for Agricultural Chemicals Division
BASF SE, the German manufacturing giant, is reportedly considering listing its agricultural chemicals division on the US stock exchange. The move comes amid the company's ongoing restructuring efforts.
Sources familiar with the matter indicate that BASF has approached banks to solicit pitches for the potential listing. The unit could be valued at up to €19.5 billion, according to analysts at JPMorgan Chase & Co.
The company is also considering a listing in Germany. The listing could take place as early as next year. BASF's agricultural chemicals division produces crop protection products, including herbicides and fungicides.
BASF CEO Markus Kamieth has been overhauling the company's operations to address high energy costs and declining global demand, particularly in China. The company recently announced plans to list its agricultural unit and sell its decorative paint business in Brazil.
A US listing would allow BASF to tap into deeper capital markets, higher valuations, and a larger investor pool. This strategy has been adopted by other European companies seeking to raise funds.