BASF's Chilean Exit and Australian Green Light Cap a Busy Fortnight for the Chemicals Giant

BASF has agreed to sell its Palatal business in Chile to ALTA Performance Materials, a deal that will not close until customary conditions and regulatory approvals are satisfied. Until then, Palatal remains part of the Ludwigshafen-based group. The Financial Times reported the agreement yesterday, and investors greeted it by pushing BASF shares up 2.5% on the day.

The divestment headlines a stretch of news flow that also brought a fresh product approval, a new Asian production site, a pair of engineering awards and an upgraded outlook — all against the backdrop of a cautious analyst stance.

Australian regulator clears Luximax for canola

On the regulatory front, BASF secured an approval on Wednesday: Australia's APVMA authorised the pre-emergence herbicide Luximax for use in canola, the company said. A day earlier, BASF had signed an investment agreement with Nanjing Jiangbei New Area for a new electronics materials production site in Nanjing, with output scheduled to begin by the end of 2028.

Guidance raised after stronger third quarter

Roughly a week ago, BASF lifted its forecast for EBITDA before special items following a third quarter that came in ahead of expectations. For full-year 2026 the company now targets EUR 7.4bn to EUR 7.8bn, up from a previous range of EUR 6.9bn to EUR 7.7bn. Third-quarter 2026 sales reached EUR 16.36bn, a 14% increase year on year, while EBITDA before special items rose 15% to EUR 1.64bn.

Buyback rolls on

In its interim report on the share buyback published Monday, BASF disclosed the purchase of 355,128 of its own shares between 26 and 30 October inclusive. Since the programme began on 3 August, the cumulative volume bought back through 30 October has reached 7,595,230 shares.

Awards for vehicle components

BASF also reported two awards yesterday for vehicle components developed with partners. Together with Toyota and Vuteq, it received the SPE Automotive Innovation Grand Award for the thermoplastic truck bed of the 2026 model-year Toyota Tacoma. A second SPE Automotive Innovation Award went to BASF, Stellantis and L&L Products for a composite tunnel reinforcement in the 2027 model-year Jeep Grand Cherokee; according to BASF, the component contains 60% recycled polyamide.

LBBW nudges target higher, keeps neutral rating

Analysts at LBBW raised their price target for BASF on Wednesday to EUR 57 from EUR 56, though they left their "Hold" rating in place — a reminder that the share price gains still sit alongside a restrained verdict from the research house. BASF will publish its next set of results on 26 February 2027.