BASF Offloads Chilean Resins Business to ALTA as Upgraded Guidance and Buyback Steady the Ship

BASF has agreed to sell its Palatal resins operation in Chile to ALTA Performance Materials, a divestment that fits the German chemicals group's push to sharpen its focus on core businesses. The deal, announced Wednesday, remains subject to customary conditions and regulatory approvals, and the business stays under BASF ownership until closing. Neither a purchase price nor a completion date was disclosed, leaving the financial materiality of the transaction impossible to gauge until terms surface.

The Concón site produces vinyl ester and unsaturated polyester resins, supplying customers in construction, mining, aquaculture, transport and industry. For ALTA, the plant would become its second production base in Latin America once the transaction is consummated; until then, the two companies continue to operate independently.

The divestment lands against a brighter operating backdrop. In the third quarter of 2026, BASF posted revenue of EUR 16.4 billion, up 14% year on year, with higher prices doing most of the work and volumes also advancing on the ramp-up of its Zhanjiang site in China. Cost programmes are contributing as well. Analysts detect signs of an economic bottoming out, though they temper that view with caution over weak Chinese demand and what may be overly optimistic expectations for the final quarter.

Guidance Raised, Buyback Rolling

Roughly a week ago, BASF lifted its earnings outlook for the second time, now projecting 2026 EBITDA before special items of EUR 7.4 billion to EUR 7.8 billion, compared with a prior range of EUR 6.9 billion to EUR 7.7 billion. The revision followed a third quarter that beat expectations, in which EBITDA before special items rose 15% to EUR 1.6 billion.

LBBW responded on Wednesday by nudging its price target for BASF shares to EUR 57 from EUR 56, while keeping its "Hold" rating — a reminder that the share price gains still sit alongside a restrained verdict from the research house.

On the capital returns front, BASF reported in its Monday interim buyback disclosure the acquisition of 355,128 of its own shares during the period from 26 to 30 October inclusive. Since the programme began on 3 August, repurchases had reached 7,595,230 shares through 30 October. The company has flagged 26 February 2027 as its next scheduled financial date, when it will publish fourth-quarter 2026 results.

A Portfolio in Motion

Alongside the Chilean exit, BASF is preparing a possible initial public offering of Agricultural Solutions in Frankfurt, with the division slated to be ready by mid-2027. That unit has recently been weighed down by falling sales and a loss. The group's pursuit of Evonik also faces steep hurdles: about a week ago, Evonik rejected its takeover offer. The Palatal sale, by contrast, builds on an already agreed change of ownership and supports the concentration on core operations — provided the closing conditions are met. Whether prices, volumes and savings can keep the operating recovery on track remains the decisive question for earnings.